Oil Prices Continued to Fall: Key Factors
23 June 12:36
Oil prices are falling moderately on Tuesday morning, June 23, following a decline at the close of the previous session. This is reported by "Komersant Ukrainian", citing “Interfax-Ukraine. “
As of 8:15 a.m., the price of August Brent crude futures on the London-based ICE Futures exchange was down $0.34 (0.44%) to $77.56 per barrel.
WTI crude oil futures for August delivery on the New York Mercantile Exchange (NYMEX) electronic trading platform had fallen by $0.13 (0.18%) to $73.73 per barrel.
On Monday, both grades fell by more than 3% amid news that the U.S. had granted Iran a 60-day exemption from sanctions following the start of negotiations on a permanent peace agreement. The exemption applies to the production, sale, supply, or shipment of crude oil, petrochemical products, or petroleum products. Any payments owed to Iran for the purchase of such products may be made in U.S. dollars.
In addition, the volume of shipments through the Strait of Hormuz is gradually recovering. According to Bloomberg, several million barrels of oil passed through this waterway—which is crucial for the energy market—over the weekend. On Monday, two tankers passed through the strait, carrying a total of approximately 2 million barrels of oil.
The gradual increase in oil flows through the Strait of Hormuz continues to put pressure on the market, ING analysts noted.
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