At the opening of the trading week, Brent crude fell 4.5% to below $84 per barrel, while US crude (WTI) dropped nearly 6% to below $80, according to market reports. The declines come as US-Iran negotiations are set to resume. US index futures rose 0.5-1%.
Brent crude fell 4.5% to below $84 per barrel Monday morning, and US crude (WTI) dropped nearly 6% to below $80, as the trading week opened and US-Iran talks resumed. US index futures rose 0.5-1%, signaling optimism in equities despite the energy sell-off.
The declines add to a period of volatility in oil markets shaped by the US-Iran diplomatic track. As The Zioneer reported on July 28, Brent crude had fallen to $85 per barrel. The price of US crude had briefly fallen below $70 in June as expectations of a US-Iran peace deal grew, before recovering.
The resumption of talks between Washington and Tehran comes after months of negotiations. The market appears to be pricing in the possibility of increased Iranian oil exports, which would add to global supply. The talks are expected to continue this week, and further price movements are likely.
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