𝗢𝗶𝗹 𝗣𝗿𝗶𝗰𝗲𝘀 𝗥𝗲𝗺𝗮𝗶𝗻 𝗔𝗯𝗼𝘃𝗲 𝗣𝗿𝗲-𝗪𝗮𝗿 𝗟𝗲𝘃𝗲𝗹𝘀
Oil prices traded near 80 dollars per barrel on Tuesday. Prices rose slightly after a significant drop on Monday.
Current Market Data:
- WTI crude: 81.12 dollars per barrel
- Brent crude: 83.43 dollars per barrel
Key Market Facts:
- Prices fell 5% on Monday following news of a US-Iran memorandum of understanding.
- Current prices sit above the 70 dollars per barrel seen before the conflict.
- Prices are lower than the 100 dollars per barrel recorded weeks ago.
- The conflict previously blocked the Strait of Hormuz.
- This shipping route typically carries one-fifth of global oil supply.
- The war resulted in a loss of 14 million barrels of daily output.
Status of the Agreement:
- Iran confirmed the memorandum of understanding.
- The deal does not include a final agreement on the Iranian nuclear programme.
- Negotiations on nuclear issues will continue for 60 days.
- Iran plans to freeze nuclear activity by stopping uranium enrichment and facility expansion.
- A permanent truce is not yet established.
- The agreement may reopen the Strait of Hormuz and extend a ceasefire for 60 days.
Supply Outlook:
- The energy sector needs months to return to full capacity.
- Tankers require time to reach ports and load cargo.
- Principal buyers include Asian markets.
- Major exporters include Saudi Arabia, Iraq, Bahrain, United Arab Emirates, Kuwait, and Oman.
Source: The Times of India