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Oil prices fall on hopes of US-Iran breakthrough
Times of India··29 Jul
Oil prices extended losses on Tuesday, with Brent crude falling to 86.89 dollars a barrel and US WTI crude to 81.16 dollars, both one week lows, as hopes of a US-Iran diplomatic breakthrough eased fears over supply disruptions. Both benchmarks had tumbled about 8 percent in the previous session before Tuesday's further decline.
Prism
What It Means For You
- Falling crude prices could ease pressure on fuel costs and transport expenses for consumers if the decline holds over coming weeks.
- Businesses reliant on imported oil, from airlines to manufacturers, benefit from lower input costs whenever global crude prices soften.
- Investors tracking energy markets get a signal that diplomatic progress, not just supply data, now moves oil prices meaningfully.
What's Happening
- Brent crude fell to 86.89 dollars a barrel and US WTI crude to 81.16 dollars, both one week lows, after hopes of a US-Iran deal.
- President Donald Trump said talks with Iran were going well, though he warned strikes would resume if negotiations failed.
- Russia's Caspian Pipeline Consortium terminal also resumed oil loadings after a week long suspension caused by drone attacks.
Why Supply Numbers Still Outweigh Diplomacy Talk
- Despite the price drop, Saudi Arabia said it intercepted drones targeting petroleum facilities, and Houthi rebels claimed a strike on a Saudi pipeline.
- Crude exports through the Strait of Hormuz remain well below normal, averaging 2.9 million barrels a day against 5.9 million the prior week.
- A Reuters poll suggested US crude inventories fell last week, while distillate fuel stockpiles were expected to have risen.
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