Oil Prices Drop Amid Continued Calm Between US and Iran

Oil prices continued their downward trend in early Asian trade on Tuesday as calm prevailed for a fourth night between Iran and the United States.

The price of WTI crude fell by 1.97% to $80.98 per barrel, while Brent crude slipped by 1.77% to $86.80 per barrel.

The decline in oil prices is attributed to a combination of factors, including the reduced geopolitical risk premium and demand destruction.

Last week's inventory builds across the board, reported by the EIA, were one of the first signs of demand destruction kicking in, and markets are closely watching today's American Petroleum Institute inventory estimates for confirmation.