Oil declines, hooked on Iranian nuclear negotiations

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Around 12:15 p.m., Brent lost 1.99% to 92.92 dollars and WTI lost 2.20% to 91.60 dollars.

Oil prices were down on Thursday, with the market swinging between gains and losses this week, influenced by conflicting reports about the crisis in Ukraine and the possible conclusion of an Iranian nuclear deal.

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Around 11:15 GMT (12:15 CET), the price of a barrel of Brent from the North Sea for delivery in April lost 1.99% to 92.92 dollars.

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In New York, a barrel of West Texas Intermediate (WTI) for delivery in March fell 2.20% to 91.60 dollars.

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“The oil market is schizophrenic. He can’t make up his mind. One day it recovers, the next day it plunges,” said Stephen Brennock, analyst at PVM Energy.

“Reports that the United States and Iran were close to reaching an agreement in the nuclear negotiations” are putting downward pressure on oil prices, said Carsten Fritsch, an analyst for Commerzbank.

Participation in the market by Iran, a founding member of the Organization of the Petroleum Exporting Countries, has been severely limited since 2018 and the reinstatement of US economic sanctions by Donald Trump’s administration.

The Iranian negotiator assured Wednesday that the parties were “closer than ever to an agreement”, which could reverse the current state of the world’s supply of black gold.

In Eastern Europe, Moscow announced on Thursday that it would continue its military withdrawal from regions neighboring Ukraine.

Westerners, however, doubt Russia’s good faith and suspect it of wanting to attack its neighbor, claiming to see no evidence of de-escalation.

An anonymous White House source even accused Moscow of adding 7,000 men to its forces threatening Ukraine.

“Under current market conditions where supply is already tight, sanctions on Russian energy exports likely to be imposed after any dispute would create even more scarcity and potentially drive the price per barrel beyond the $100 mark,” says Ricardo Evangelista of ActivTrades.

Source From: Google News

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