Oil prices fell by about two dollars today, Thursday, amid expectations that the United States and Iran would reach an agreement on the Iranian nuclear program that reduces sanctions on Tehran, while the sudden rise in US crude oil stocks increased last week investor fears about the abundance of supply.
Brent crude futures fell 2.26 dollars, 3.24% to $ 63.83 a barrel in the latest transactions, and US West Texas Intermediate crude futures fell $ 2.27 or 3.59% to $ 60.87.
US President Donald Trump said today that the United States is very close to reaching a nuclear agreement with Iran, adding that Tehran had “somewhat” agreed to the conditions.
This came after an Iranian official told NBC News in an interview broadcast on Wednesday that Iran was ready to agree to an agreement with the United States in exchange for lifting economic sanctions.
“Prices) decreased due to the increase in crude stocks as stated in the US Energy Information Administration report, and the relegation accelerated due to what appears to be a calm of hostility in nuclear negotiations between the United States and Iran,” John Evans, BVM Oil, said in a comment on oil prices.
The US Treasury announced yesterday, Wednesday, the imposition of sanctions targeting Iranian efforts to manufacture the components of the ballistic missiles locally, in the wake of sanctions imposed on the day before yesterday, Tuesday, on about 20 companies within a network it said was supplied Iranian oil to China for a long time.
The sanctions came after the fourth round of the talks between the United States and Iran in the Sultanate of Oman with the aim of resolving the differences related to the Iranian nuclear program.
Data from the US Energy Information Administration showed that crude stocks rose 3.5 million barrels to 441.8 million barrels in the week ending May 9, compared to analysts’ expectations for a Reuters poll with a decline of 1.1 million barrels.
Meanwhile, the International Energy Agency raised its expectations for the growth of oil demand in 2025 to 740 thousand barrels per day, an increase of 20 thousand barrels per day from the previous report, and attributed this to higher expectations for economic growth and low oil prices, which supports consumption.
The Organization of Petroleum Exporting Countries (OPEC) and its allies are among the producers within what is known as “OPEC Plus” to increase oil production, and on Wednesday, OPEC reduced its expectations for the growth of oil supplies from the United States and other producers outside OPEC Plus this year.
gold
Gold prices stabilized today, Thursday, at the lowest level in more than a month, amid anticipation of the product price index data in the United States in search of more indicators on the direction of the economy.
Gold settled in instant transactions at $ 3177.90 an ounce in the latest transactions after reaching its lowest level since April 10 earlier in the session.
US gold futures fell 0.22% to $ 3181.30.
The United States and China agreed to reduce mutual fees significantly and declared a 90 -day comment, which led to the calm of a trade war between the two largest economies in the world, but global markets remain cautious about what may happen after the 90 days.
The markets are now awaiting the data of the producers ’price index in the United States scheduled to be issued today, as investors are looking for more indicators on the path that the Federal Reserve (US Central Bank) will adopt after consumers’ data that came weaker than expected.
The markets expect to reduce interest rates by 50 basis points this year, starting next October.
Gold is usually seen as a way to hedge in economic and political fog times, and it ascends in the low interest rate environment.
The performance of other precious metals came as follows:
- Silver in instant transactions fell 0.45% to $ 32.08 an ounce.
- Platinum rose 0.14% to 986.90 dollars.
- Palladium increased 0.28% to 958.47 dollars.
