Oil Prices Decline as US-Iran Draft Agreement Eases Geopolitical Fears
Oil prices declined this week after renewed optimism over a potential US-Iran draft agreement eased geopolitical fears. Brent crude fell back to around $80 per barrel, down from earlier gains. The drop in oil prices comes as President Trump criticized US refiners for high fuel profits, ordering retailers to 'get retail prices down' as soon as possible.
US oil majors ExxonMobil and Chevron have seen their refining margins surge since the onset of the war in March, with the 3-2-1 spread doubling to $60 per barrel. Meanwhile, the average US gasoline pump price has dipped to $4.08 per gallon as of August 4, up 30% from a year ago.
Despite the decline in oil prices, OPEC+ member countries have agreed to raise their collective output targets by 188,000 b/d in September, completing the phased unwinding of 1.65 million b/d voluntary production cuts first announced in 2023.