Hopes for Peace Pressure Oil Prices
Oil prices weakened again after President Donald Trump said the United States and Iran were in talks to end the Middle East conflict.
Brent crude fell below US$85 per barrel after plunging 8.7% in Monday's trading, its biggest drop in more than three months. WTI also hovered around US$82 per barrel.
Trump said the attacks on Iran were temporarily halted to allow for negotiations. However, there is no confirmation that official talks between the two countries have yielded any progress.
Market participants remain cautious as tanker traffic in the Strait of Hormuz has not yet returned to normal. Iran and Oman continue discussions to reopen the waterway that previously carried about a fifth of global oil flows.
Supply pressures have also begun to ease after Kazakhstan's main oil export terminal resumed operations. Two tankers have begun loading at the Caspian Pipeline Consortium facility.
Brent for September delivery fell 0.7% to US$87.73 per barrel, while WTI weakened 0.9% to US$81.84. Prices have the potential to continue falling if negotiations continue and supplies return to normal, but could rebound if the conflict escalates. (asd)*
Source: Newsmaker.id