Oil prices have been falling for several days in the global market on hopes that the upcoming talks between Iran and Qatar will reopen the Strait of Hormuz, which could ease disruptions to oil supplies caused by the Middle East conflict.
According to a Reuters report, the price of Brent crude in the international market fell by 60 cents, or 0.7 percent, to $87.24 per barrel as of Thursday morning.
Oil prices also fell in the US market. West Texas Intermediate (WTI) crude oil fell 56 cents, or 0.7 percent, to $81.67 a barrel.
The main reason behind the drop in oil prices is being seen as the potential talks between Iran and Qatar, which have raised hopes in the market that shipping traffic in the Strait of Hormuz could return to normal through the talks.
The Middle East conflict has led to concerns about oil supplies as shipping traffic in this vital sea route has been disrupted. The Strait of Hormuz, through which a large amount of the world’s energy is transported, could help ease supply shortages if the route is restored to normal.
Concerns about oil shortages in the market have eased as supply conditions are expected to improve. This has had an impact on prices. As a result, the prices of two types of oil – Brent and WTI – have continued to fall today, following a series of consecutive days of decline.
Reuters says that market participants are now watching the outcome of the talks between Iran and Qatar.
