Oil prices fell by more than two dollars amid speculation that a possible nuclear deal between the United States and Iran could ease sanctions and boost global supplies. About this informs Reuters.
Brent crude futures fell $2.16, or 3.3%, to $63.93 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $2.10, or 3.3%, to $61.05 a barrel. On Wednesday, both key grades were already down about 0.8%.
The representative of Iran announced his readiness to conclude an agreement with the United States in exchange for the lifting of sanctions, which caused an active sell-off in the oil market. Saudi Arabia also supported the talks.
“The Kingdom fully supports the nuclear talks between the US and Iran and hopes for positive results,” – noted the head of the Ministry of Foreign Affairs of Saudi Arabia, Prince Faisal bin Farhan Al-Saud.
Despite diplomatic developments, the US maintains sanctions pressure on Iran. On Wednesday, the Treasury Department imposed new restrictions aimed at Tehran’s efforts to produce components for ballistic missiles. The day before, sanctions were also imposed against a network of more than 20 companies linked to the supply of Iranian oil to China.
Another factor in price reduction was unexpected statistical data. Crude oil inventories rose by 3.5 million barrels to 441.8 million in the week ended May 9, according to the US Energy Information Administration, although the market had expected a decrease of 1.1 million.
According to estimates by the American Petroleum Institute (API), last week stocks increased even more significantly — by 4.3 million barrels. At the same time, OPEC+ continues to increase production, although on Wednesday the organization lowered its forecast for production growth in countries that are not part of it.
