Crude Oil Prices Plummet as Iran Diplomacy Reduces Supply Fears

Crude oil prices declined on Thursday as diplomacy involving Iran and Oman reduced immediate supply fears. The possibility of an agreement that improves tanker access through the Strait of Hormuz could lower the geopolitical premium built into Brent and WTI prices.

The October Brent crude price fell to $79.08 a barrel, while the September West Texas Intermediate (WTI) price dropped to $74.69 as of 12:24 a.m. GMT on August 6.

A 2.5 million barrel increase in U.S. commercial crude inventories added pressure on prices, contradicting analyst expectations of a decline. The OPEC+ policy also contributed to the bearish trend, with the group approving a production increase of about 188,000 barrels per day for September.

Brent crude is testing a four-hour demand zone near $79.67, according to Pipnotic's analysis. A break below this level could weaken the scenario for a recovery toward resistance in the low-to-mid-$80s.