Oil Prices Plummet as Trump Cancels Iranian Attack Plans
Oil prices plummeted more than $5 per barrel on August 3 after US President Donald Trump cancelled plans to attack Iran in an attempt to negotiate a quick deal. Despite Tehran's denial of any talks, Trump cited ongoing negotiations as justification for calling off the attacks.
Brent crude futures dropped by 5.11% to $83.44 per barrel, while US West Texas Intermediate crude fell by 6.37% to $79.28 per barrel, their largest daily declines since July 27.
The price drop comes after a significant surge in oil prices last month due to increased tensions between the US and Iran, which led to attacks on several tankers around Oman. The Organisation of the Petroleum Exporting Countries (OPEC) had approved an increase of around 188,000 barrels per day from September.
PVM analyst Tamas Varga warned that oil prices may be set for a correction due to persistent depletion of global oil inventories and volatile market conditions.