Black gold no longer flames. The courses of oil fell once more sharply on Tuesday, crushed by the economic slowdown in China but above all by the increasingly palpable prospect of an agreement on the iranian nuclearwhich would almost instantly release millions of barrels.
The price of a barrel of American West Texas Intermediate (WTI) for September delivery fell 3.22%, ending at 86.53 dollars, its lowest closing level since January 25, almost seven months. As for Brent from the North Sea, due in October, it dropped 2.90% to 92.34 dollars, its lowest closing level since early February.
Talks continue with Iran
For Robert Yawger, of Mizuho, this new stall is “mainly linked to Iran”. Those responsible for the European Union and the United States was examining on Tuesday the Islamic Republic’s response to the EU’s proposed text to revive the Iran nuclear deal, along with requests for changes.
Although the Europeans initially presented their version of the document as “final”, discussions continued on possible amendments. “It looks like they are really trying to come to an agreement,” observed Robert Yawger. If successful, “it’s the possibility of seeing a million barrels more per day on the market”, underlines the analyst, and more in the medium term. When the United States withdrew from the original agreement in 2018, l’Iran was exporting regarding 2.45 million barrels a day, according to the US Congressional Research Service.
Some 100 million barrels on hold
Having been unable to export freely for four years, the ninth-largest producer in the world (according to the American Energy Information Agency) might also quickly release some 100 million barrels already pumped. “If the Iran nuclear deal is revived, it might push the price (of WTI) very close to $80,” said Edward Moya of Oanda in a note.
