The upward rally accumulated by fuel futures has deflated during the day of this Thursday and already adds two consecutive days of sharp falls. A barrel of Brent loses 1.1% due to Iran’s intention to return to the negotiations of the nuclear agreement.
If this negative trend persists, the correction that affects the price of a barrel of Brent opposes the streak of seven consecutive weeks closing in green, thus ruling out reaching the eighth unless prices rebound before reaching to Sunday, something unlikely, and offset the current data. Even so, the month of October is almost guaranteed for the benchmark in Europe with an increase that will be around 5% thanks to the energy crisis that has boosted the demand for crude oil and the message launched from Saudi Arabia, which suggests that the price Crude oil may continue to rise, according to Bloomberg.
With the data at the close of the European markets, Brent has lost 1.1% to stand at 83.81 dollars, although it has reached 81.7 dollars per barrel during the early hours of the morning of last Thursday . It was not enough that the price of crude came from its best moment of the year after hitting $ 86.4 on Tuesday, highs that had not been seen since 2018, when there was a sharp cut in crude production by OPEC That skyrocketed the price.
Once again, geopolitics has conditioned this change in the so-called ‘black gold’. The price of crude oil has fallen to its lowest level in two weeks after Iran said that it will resume its talks with the rest of the world powers to reach an agreement on nuclear energy again.
The chief negotiator on nuclear affairs of the Middle East country, Ali Bagheri Kani, assured last Wednesday that Iran is ready to sit down to negotiate with the European Union , starting in November, its reincorporation to the 2015 nuclear agreement.
The tension in the Strait of Hormuz
This would mean a de-escalation of the tension in the Strait of Hormuz and the possible return of Iranian crude to the market after the international community took the consideration of imposing trade sanctions on this country, which cut the total volume of oil in the market and raised its price and demand.
On the other side of the Atlantic, the benchmark in the United States , the West Texas barrel , has also cut its price by 1.04%, in part due to the news coming from Iran, after having touched its annual maximum during the last session. Monday above $ 85 per unit.
The other event that has conditioned the price of West Texas has been the increase in oil reserves in the United States . In this case, the consensus of analysts estimated an increase of more than 1.5 million barrels and finally 4.2 million was reached , according to data from the North American Energy Information Administration.