Oil lands more than 2% amid indications of progress in the American and Iran talks

Oil prices fell by more than 2% today, Monday, which reflects the state of anxiety in global markets regarding the progress made in talks between the United States and Iran, while investors’ concern continued that American customs duties will lead to winds of reducing fuel demand.

This progress has sparked expectations of the presence of Iranian crude in the market, which was confirmed by Harry Chilingsrien, head of the research department at UNEX Capital, by referring to positive perceptions about the possibility of reaching an agreement.

Brent crude futures decreased 2.5% to $ 66.26 a barrel, while US West Texas Intermediate crude fell in the same percentage to $ 63.08 a barrel. This decrease reflects the effect of the previous weekly holiday and the effect of geopolitical conditions.

The United States continues to exert economic pressure on Iran, as it imposed additional sanctions on a special Chinese refinery for treating Iranian crude oil, which increases the complexities of the situation.

The markets are facing other pressure, including criticism of US President Donald Trump to the Federal Reserve, in light of the expectations of the OPEC+ group to raise production by 411 thousand barrels per day starting in May. However, part of this increase may be compensated with additional discounts as a result of some countries bypassing their productive shares. The declining demand and the high price of gold reflects the aversion of investors from risks in light of the high tensions.

A Reuters poll showed that 50% of investors believe that customs duties will lead to the slowdown in the American economy, which stimulates the monitoring of important data waiting this week, including the purchasing manager index for the manufacturing and services sectors for April.