Oil Prices Slide Amid US-Iran Diplomacy and Oman Talks
Oil prices have retreated to near one-month lows as expectations of a US-Iran conflict subsiding and 'constructive' talks between Oman and Iran give market participants hope for easing tensions.
Brent, the benchmark for two-thirds of global oil, fell by 3.03% to $85.90 per barrel at 1:57 pm UAE time, while West Texas Intermediate (WTI), which tracks US crude, declined by 2.95% to $79.93 per barrel.
This marks the first time Brent has dropped below $85 and WTI below $80 since early this month. For the week, they have retreated nearly 7% and 6.1%, respectively.
Ole Hansen, head of commodity strategy at Denmark's Saxo Bank, said that 'the market increasingly senses' that the US and Iran are looking for an exit ramp to avoid further economic pain.