Oil prices marked significant declines yesterday, influenced by increased hopes for a solution to the war with Iran.
Europe’s gross Brent oil fell below $100 per barrel for the first time since 7 October. This represented a decline of nearly $8, or 8.3 percent. Even American crude oil, known as West Texas Intermediate ( WTI fell by 8.3 percent, closing the trading to about $88.12 per barrel. This was the biggest daily decline in oil prices since April. This may bring relief to consumers.
But is this price decrease expected to continue?
The significant decline in the oil price since the publication of the results of the US mesmandate elections shows that the market is clearly receiving it as a well as the complete return of the [US-Iran] diplomatic road, says Bill Farren-Prece, senior researcher at Oxford Institute for Energy Studies.
However, he adds: I think it might be a little premature.
Over the past few months, we’ve spent many times in such situations and negotiations between the US and Iran are quite complicated, Farren-Price says of the programme Today.
In addition, he says Iran will aim to receive the highest price in exchange for full reopening of the Hormuz Strait and allowing the free circulation of commercial ships.
We recall that Iran’s outbreak of war led to de facto closure of the Strait of Hormuz, a key maritime corridor that normally exceeds about 20 percent of the world’s liquid oil and natural gas. It was this break that caused global energy prices to mark immediate growth.
Source Layer: Insander