Brent oil investment falls, WTI bounces back as Iran talks continue
Crude oil prices slid down the global polls this week, as the prolonged nuclear program tensions between Iran and the West seemingly began to pass a critical point and began abating. The absence of demand across Europe also dampened crude oil investment.
Brent crude oil futures, the European benchmark, fell more than 2%, tumbling to a two week low,as Iran and the West agreed to meet for a peace-minded discussion concerning the embargos placed upon the OPEC member’s oil. The potential of Iran’s abundant supply of crude hitting the market caused severe downturns in both domestic and global oil investment.
The fact that an abnormal amount of global refineries are under maintenance at the moment also affected the crude oil market negatively. Though demand is expected to rebound somewhat once the refineries are launched back online, the present situation remains grim.
Brent futures currently sit at $119.06 per barrel on the ICE Futures Exchange in London.
The reported complacent approach that traders have taken to the resolution of the Iranian conflict has played a large part in Brent’s recent movements on the charts. Investors seem convinced that the odds of crude oil actually leaving the troubled OPEC nation are slim, causing crude oil futures to fluctuate wildly. Despite the fact that the transponders placed onto Iran’s vessels indicate a lack of movement, the chance that the transponders were tampered with remains high.
West Texas Intermediate, the American benchmark, gained minor ground on the charts, as the nation’s oversupplying issues are expected to drop off in the near future. The reparations being performed to the Seaway pipeline will be finished more than two weeks ahead of schedule.
WTI crude oil for delivery in May currently sit at $103.89 per barrel on the New York Mercantile Exchange.