The price of crude oil on international markets has marked a significant decline, where crude oil Brant has suffered a 5.02 per cent drop, dropping to the $39.38 barrel level. During the trade session, the price of future contracts has also reached the quota of $9.80 per barrel, while American oil W IT has also suffered a decline, trading at about $84.
This move follows a week of heavy losses, where Brent oil had suffered a decline of about 16 percent weekly landing since the beginning of the COVID-19 pandemic.
The main cause for this cut in prices is estimated to be the signals for easing tensions in the Middle East and the possibility of reaching an agreement between the United States and Iran.
US President Donald Trump’s statements, that a new military intervention over Iran is slightly possible if negotiations progress, have eased investors’ fears of possible disruption of supply through Hormuz Strait.
Despite this decline, the security situation in the region remains fragile, as attacks on ships near major sea routes and shocks on energy infrastructure in Saudi Arabia continue to be reported.
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Source Layer: Signal
