Pakistan-Mediated Talks Send Crude Oil Prices Plummeting

Crude oil prices plummeted on the New York Mercantile Exchange (NYMEX) last week, with West Texas Intermediate (WTI), the international benchmark for September delivery, settling down $2.88 or 3.1% at $89.31 a barrel.

The decline marked the contract's first drop in about a week, since August 16th.

The trigger behind the sharp sell-off was a report that Pakistan is exploring a resumption of talks aimed at ending hostilities between the United States and Iran.

This has led to expectations that the energy supply stagnation in the Middle East could be resolved, putting sellers firmly in control.