WTI crude oil prices declined in early trading on Thursday, slipping just above the $60 per barrel mark. The market remains focused on the ongoing negotiations between Washington and Tehran aimed at reaching an agreement to end Iran’s nuclear programme. Reports this morning of a new round of talks being scheduled between the two sides contributed to the downward pressure on prices. Investor sentiment has also been unsettled by rumours of a potential Israeli strike on Iran’s nuclear facilities. Should such an attack occur, it would likely derail the negotiations, further destabilise the region, and make the full return of Iranian oil to global markets increasingly unlikely. Adding to the bearish outlook, the latest US crude oil inventory data revealed a build of over one million barrels, reinforcing oversupply concerns. Meanwhile, news that OPEC+ may extend current production quotas is also exerting downward pressure on prices. Against this backdrop—marked by the prospect of abundant supply and persistent uncertainty surrounding the global economic outlook and demand forecasts—crude prices will likely remain under pressure in the near term.
Ricardo Evangelista – Director, ActivTrades
Source: ActivTrader
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