WTI Prices Plummet Amid US-Iran Deal Hopes
WTI Crude Oil prices continued to slide on Monday, plummeting nearly 8% for the day as optimism over a potential US-Iran deal fueled hopes of a diplomatic resolution to the five-month-old war.
US President Donald Trump claimed that Mideast allies have reached the parameters of a deal on Iran's nuclear program and the full reopening of the Strait of Hormuz, sparking a sharp decline in crude oil prices.
The Organization of the Petroleum Exporting Countries (OPEC) also decided to raise production quotas by about 188,000 barrels per day from September, further contributing to downward pressure on prices.
Analysts at Danske Bank noted that despite successive monthly hikes over most of the year, the market impact has been limited due to export disruptions caused by the Iran and Ukraine wars.