Time: 12:12 – A barrel of Brent oil is traded at $108.53 in international futures markets. The decline in oil prices exceeded 5 percent on the news that the USA and Iran are approaching a final agreement!
According to the news in Axios, the USA expects Iran to respond to the one-page memorandum within 48 hours.
The barrel price of Brent oil, which rose to $114.44 yesterday, completed the day at $109.87.
The forward barrel price of Brent oil decreased by 1.21 percent compared to the closing date at 09.43 today, reaching 108.53 dollars. At the same time, West Texas Intermediate (WTI) crude oil was sold at $101.09 per barrel.
Increasing optimism about the final agreement between the USA and Iran was effective in the decline in prices.
In his post on his social media account, US President Donald Trump stated that they decided to stop the Freedom Project, which is described as an aid initiative for the passage of ships stranded in the Strait of Hormuz, for a short time.
“At the request of Pakistan and other countries, given the tremendous military successes we have achieved in our campaign against Iran, as well as the great progress we have made toward reaching a full and final agreement with Iranian representatives, we have mutually agreed to suspend Project Freedom for a short period of time to see if the (interparty) agreement can be finalized and signed, while the blockade remains in full effect,” Trump said. he said.
While this development reduced the tension in the region arising from the Strait of Hormuz, it increased expectations for diplomatic progress towards ending the war between the USA/Israel and Iran.
On the other hand, data indicating a sharp decrease in crude oil stocks in the USA limited the decline in prices.
The American Petroleum Institute announced that crude oil stocks in the USA decreased by 8 million 100 thousand barrels last week compared to the previous week. This decrease led to concerns about supply contraction in the country.
The US Energy Information Administration is expected to release official stock data during the day.
It is stated that technically $ 113 can be watched as resistance and $ 103.32 as support zone for Brent oil.
