Hopes for Peace Drive Oil Prices Down for Third Consecutive Day
Oil prices continued their decline for a third day during Asian trading on Wednesday. Brent fell to around US$78.27 per barrel, while WTI weakened to US$74.50, following losses of over 10% in the previous two sessions.
Selling pressure mounted as the market grew increasingly optimistic that the United States and Iran could reach an interim agreement to reopen the Strait of Hormuz. Qatar stated that a draft proposal had been prepared, while Washington, Tehran, and Oman were reportedly nearing a preliminary 60-day deal.
US President Donald Trump said talks were proceeding very well and that clearer developments could emerge within 48 hours. The draft agreement reportedly allows ships to enter via the northern channel controlled by Iran and exit via the southern channel near Oman, without levies or transit fees. However, no final agreement has yet been announced.
The drop in oil prices was also supported by Trump's decision to postpone a new strike on Iran to allow time for diplomacy. Iran is even considering the involvement of European nations in mine-clearing operations in the Strait of Hormuz. Nevertheless, a short-term deal would not necessarily end the conflict or resolve disputes regarding Iran's nuclear program.
From the United States, an API report showed crude oil inventories rising by approximately 2.69 million barrels, contrary to forecasts of a 2-million-barrel decline. This supply increase reinforced bearish pressure, although the market is still awaiting official US government data to confirm the stock build.
Newsmaker Analysis: Oil's short-term trend remains bearish as long as Hormuz talks show progress. Brent, holding below US$79, could test the US$77–US$76 range, while WTI might head toward US$74–US$72. However, a breakdown in negotiations or a new attack on vessels could revive the geopolitical premium, pushing Brent toward US$80–US$82 and WTI to US$76–US$78. (asd)*
Source: Newsmaker.id
