International crude oil prices fall further
New Delhi, July 28: International crude oil prices fell further today as traders assessed the possibility of a diplomatic breakthrough between the United States and Iran, raising expectations that tensions in the Middle East could ease and energy flows across the region may gradually normalise.
Brent crude futures declined $0.78, or 1 per cent, to $88 a barrel, while US West Texas Intermediate crude fell $0.88, or 1.1 per cent, to $82 a barrel.
Both benchmarks touched their lowest levels in more than a week during the session. The decline followed a sharp sell-off in the previous session.
Brent crude futures had dropped $8.42, or 8.7 per cent, to settle at $88.36 a barrel, their lowest level since July 17.
WTI futures fell $6.70, or 7.5 per cent, to close at $82.61 a barrel, the lowest since July 16. Combined, crude oil prices have fallen about 10 per cent over two sessions as the market reassesses the geopolitical risk premium built into prices during the conflict.
Hopes Ease Supply Concerns
The crude prices fell as US President Donald Trump said Washington was engaged in talks with Iran and indicated that a resolution remained possible.
However, he also warned that US strikes could resume if negotiations failed. Iran has issued similar warnings over possible retaliation.
The prospect of negotiations has reduced immediate fears of a broader disruption to oil supplies and key maritime routes.
Traders are closely watching whether any diplomatic progress could restore normal energy movements across the Middle East. (BVI)
