Karachi: A possible ceasefire between the US and Iran and ongoing talks to reopen the Strait of Hormuz have helped bring down crude oil prices in the global market. However, the threat to oil facilities in Saudi Arabia has continued to weigh on global energy markets.
Brent crude oil prices fell 87 cents, or 0.82 percent, to $105.73 a barrel at the start of trading on Friday, September 25. US West Texas Intermediate (WTI) crude also fell $1.56, or 1.65 percent, to $93.05 a barrel. These figures show the initial situation of prices in the global market.
The decline in prices came after the previous day’s increase. On Thursday, the prices of both major contracts had risen by almost 5 percent at one point. Brent crude oil closed up 3.4 percent and WTI 2.7 percent at the end of trading.
US and Iranian negotiators in New York are discussing step-by-step steps to end the war. The proposed plan includes Iran reopening the Strait of Hormuz and easing economic sanctions imposed by the United States on Iran.
Progress in these talks could ease concerns about oil supply in the global market. The Strait of Hormuz is one of the world’s most important maritime trade routes. This route carries large amounts of oil and gas to global markets. Its closure or disruption of traffic affects global energy supplies.
The difference between Brent and US crude prices in the global market has also become significant. On Friday, the price difference between the two contracts reached $ 12.68 per barrel. This difference is the highest since May.
The difference in the prices of the two contracts is affected by oil demand, supply and trade conditions in the global market. Concerns about domestic supply and exports can also affect US crude prices.
Despite the hopes raised by the talks, tensions in the Middle East remain a threat to the global market. Houthi rebel attacks in Saudi Arabia have raised concerns about oil facilities and supply security.
Experts say a ceasefire between the US and Iran could help improve global oil supplies. However, if no progress is made on a deal or more attacks occur in the region, prices could rise again.
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