Oil closed down sharply on Tuesday (16), with progress in negotiations on the nuclear deal between Iran and the European Union. Traders are also awaiting data on US oil inventories.
On the New York Mercantile Exchange (Nymex), WTI crude for September closed down 3.22% (US$ 2.88), at US$ 86.53 a barrel, and Brent for October fell 2.90% ( US$2.76), at US$92.34 a barrel, on the Intercontinental Exchange (ICE).
After 18 months of negotiations, progress has been made to revive the Iranian nuclear deal, says Oanda analyst Edward Moya. “We’ve been here before and we’ve seen conversations fail. This time, what is different is that the Iranians seem willing to debate the terms,” he says.
In the analyst’s estimation, if the agreement is resumed and Iranian oil gains flow in the international market, oil prices could fall to US$ 80 per barrel.
The European Union called Tehran’s response “constructive,” the report said. Bloombergwhich signals a greater chance of success in negotiations.
Moya also notes that crude oil prices have been falling as fears grow that the Chinese economy will slow further after the disappointment with Monday’s data. The commodity should continue with difficulties, while China’s recovery weakens and Germany continues with a weak performance in the European Union, says the analyst.
In Julius Baer, the head of economics research, Norbert Ruecker, says that premium risk due to geopolitical tensions linked to Russia’s war in Ukraine has mostly disappeared, with the market back to neutral territory – or even with a downward trend. “We maintain our cautious view as the mood cycle eases and fundamentals take relief. Any unexpected economic deterioration would only accelerate the downward movement.”
This Tuesday, the American Petroleum Institute (API) released estimates on oil inventories in the United States. The official data is published on Wednesday by the country’s Department of Energy (DoE).
Source: CNN Brasil
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