Oil Prices Decline Amid Hopes for Diplomatic Solution

Oil prices continued their decline on July 28 amid hopes of a diplomatic solution to the conflict between the US and Iran. The losses follow previous session declines, where benchmark contracts fell by around 8% after the US suspended its air campaign against Iran over the weekend.

According to Edward Meir, an analyst at Marex, the decline in demand, particularly in Asia, is a main reason why prices have not risen despite decreased shipping activity. The US crude oil inventory report from the American Petroleum Institute is expected later today, ahead of official data release from the US Energy Information Administration on July 29.

Brent crude futures, which are set to expire in September, reached $86.07 per barrel, a decline of $2.29 or 2.60% from previous prices. WTI futures also fell, reaching $80.79 per barrel with a decline of $1.82 or 2.20%