For a second day in a row, the prices of crude oil dropped. This drop was mainly due to reports that suggested that Iran has made progress in negotiations with the US and other countries over the nuclear deal.
The progress in talks may not only improve crude oil exports of Iran, it will increase oil supplies. This comes at a time when OPEC and allied countries have improved their output.
According to Reuters, Brent futures were down $1.93, or 2.8 per cent, to $66.78 a barrel by 4.54 pm GMT. The U.S. West Texas Intermediate (WTI) crude fell $2.04, or 3.1 per cent, to $63.45. Earlier in the day, WTI was down more than 5 per cent. However, at 5:43 pm GST it was trading at a low of 2.99 per cent at $63.53.
In addition, stock market fell on inflation fears, while the dollar appreciated. The fear of inflation is often accompanied by the fear that US Fed may hike interest rate that hurts economic growth in the US.
Meanwhile, rising COVID-19 cases and subsequent lockdowns in Asia have been weighing on sentiment in the oil market. .