Slight softening in Brent crude and WTI
Today there was a slight decline in the prices of crude oil in the international market. Brent crude fell 0.69% to about $97.14 a barrel. At the same time, WTI crude also fell by 0.65% and was seen trading at around $95.40 per barrel.
Effect of reduction in Middle East tension
The main reason for the fall in oil prices is said to be the slight reduction in tension in the Middle East. The news of ceasefire between Israel and Lebanon has reduced the nervousness in the market. Due to this, investors heaved a sigh of relief and selling of crude oil increased.
There is hope in the market from Iran-America talks
Globally, the ongoing peace talks between America and Iran have also affected the market. The prospects of talks between the US President and Iran’s Foreign Minister have raised hopes that the situation will not worsen. For this reason the pressure in the oil market has reduced.
Impact of political turmoil in America
A resolution has been passed in the US Parliament, the purpose of which is to stop the President from using war power against Iran. However, for its full implementation, the approval of the Senate is still required. This political turmoil has also reduced the uncertainty in the market a bit.
Huge decline in America’s crude oil reserves
According to the US Department of Energy (EIA), a major decline of about 8 million barrels has been recorded in crude oil reserves last week and it fell to 433.7 million barrels. This decline is more than experts’ estimates, due to which the supply-demand balance in the market has been affected.
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