Global oil prices declined for a second straight day on Wednesday as optimism grew over a possible resumption of negotiations between the United States and Iran.
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MUMBAI — Global oil prices declined for a second straight day on Wednesday as optimism grew over a possible resumption of negotiations between the United States and Iran, raising hopes of easing supply disruptions in the Middle East.
Investor sentiment improved after US President Donald Trump indicated that talks to end the ongoing conflict involving the US, Israel, and Iran could resume within the next two days, potentially in Pakistan.
The development follows a breakdown in negotiations over the weekend, which had prompted Washington to impose a blockade on Iranian ports, fuelling concerns over supply constraints after the closure of the Strait of Hormuz.
Also read: US blockade likely to cut off 2 million barrels a day of Iran oil from market
As expectations of renewed dialogue gained traction, crude oil prices in the global market slipped below the $95 per barrel mark.
The global benchmark Brent crude fell to a low of $94.42 per barrel during Tuesday’s session, after witnessing sharp volatility with an intraday high of $99.45 per barrel. The contract had opened around the $97 per barrel level.
Similarly, US benchmark West Texas Intermediate (WTI) crude also recorded a decline. Prices dropped to $87.08 per barrel during the session after opening near $98 per barrel.
Despite hitting higher levels at the start of trading, WTI cooled significantly to close around the $90 per barrel range.
The downward trend in oil prices had begun earlier as reports suggested that Israel and Lebanon were open to further negotiations amid the ongoing West Asia tensions.
Additional cues came after Trump hinted that “something could be happening” in the next few days, reinforcing expectations of diplomatic progress.
In early trade on Wednesday, Brent crude was hovering at $94.66 per barrel, down from the previous close of $95.13 per barrel.
Meanwhile, WTI crude was trading at around $90.65 per barrel, compared to its last close of $91.28 per barrel.