Oil Prices Under Further Pressure Amid Optimism for US-Iran Dialogue
Oil prices weakened in Wednesday's trading, amid growing optimism regarding talks between the United States and Iran. Positive sentiment emerged after US President Donald Trump stated that the meeting in Qatar went well, alleviating market concerns about supply disruptions.
Brent crude fell 95 cents, or 1.30%, to US$72.00 per barrel at 01:19 GMT. Meanwhile, US West Texas Intermediate (WTI) crude fell 54 cents, or 0.78%, to US$68.96 per barrel, its lowest level since February 27.
Saxo Bank analyst Ole Hansen said the ongoing negotiations in Qatar were viewed positively by the market. This situation has pushed oil prices lower, even opening the possibility of further weakening if sentiment for peace continues to strengthen.
Trump said that US relations with Iran are going quite well and that the recent meeting in Qatar was positive. The two countries held technical talks in Doha to discuss shipping routes through the Strait of Hormuz and seek a more permanent ceasefire agreement.
Throughout the second quarter of this year, Brent fell by around US$45 per barrel, marking its largest quarterly decline since the 2008 global financial crisis. Meanwhile, US crude oil fell by around US$31 per barrel, recording its largest quarterly decline since 2020 when the COVID-19 pandemic hit global oil demand.
The weakening oil prices occurred after progress appeared to be made toward resolving the Middle East conflict. Previously, oil prices had surged sharply in March due to the outbreak of tensions, but pressure has now begun to ease as hopes grow that the conflict can be brought under control.
Source: newsmaker.id
