New Delhi. Crude oil prices in the international market have fallen to a six-week low as America and Iran agreed to further extend the ceasefire in West Asia.
Brent crude today slipped below the level of $90 and reached the level of $89.24 per barrel. Similarly, West Texas Intermediate (WTI) crude was seen reaching the level of $ 86.35 per barrel today.
This month, the price of crude oil in the international market has remained below the level of $ 100 per barrel most of the time. Crude oil prices did not rise much this month due to expectations of an agreement between Iran and America. However, no deal has been finalized between the two parties yet and uncertainty remains.
Based on the talks being held through direct and indirect channels between America and Iran to end the ongoing tension in West Asia, it is also expected that cargo transportation through the Strait of Hormuz can start smoothly soon. The supply of crude oil and natural gas from Gulf countries goes through the Strait of Hormuz only.
Since the start of the war in West Asia, cargo transportation through the Strait of Hormuz has almost come to a standstill, due to which the supply of petroleum products has been badly affected.
Due to the closure of the Strait of Hormuz, the cost of transportation has also increased due to the supply of petroleum products like crude oil and natural gas through a long and circuitous route, due to which the already high prices of petroleum products have increased further.
It is being told that Iran and America have agreed to extend the current ceasefire period for another 60 days before reaching a final deal in West Asia.
However, Iran’s Foreign Ministry has said that no final agreement has been reached yet. Right now only messages are being exchanged between the two sides.
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