Oil Prices Decline Amid Prospects of a Potential Nuclear Deal and Global Demand Slowdown

Dual pressures weigh on oil prices as signs point to a nuclear agreement and anticipated demand stagnation.

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Oil

Oil

Oil prices dropped significantly on Thursday amid growing signs that the United States is close to reaching a nuclear agreement with Iran,
alongside investor reaction to the International Energy Agency’s (IEA) report,
which pointed to a potential slowdown in global crude demand growth.

Brent crude futures for July delivery fell by 3.7%, or $2.44, to settle at $63.65 per barrel.
Meanwhile, West Texas Intermediate (WTI) crude for June delivery dropped by 3.95%, or $2.49, to $60.66 per barrel.

These declines come as U.S. President Donald Trump stated during his Gulf tour that
the U.S. is “very close” to reaching an agreement with Iran over its nuclear program,
adding that Tehran had “somewhat agreed” to the proposed terms, according to AFP.

On another front, the International Energy Agency (IEA) released its monthly report,
forecasting that global oil demand growth will slow to 650,000 barrels per day for the rest of the year,
compared to 990,000 barrels per day in the first quarter.
The agency attributed the slowdown to ongoing global economic challenges, as well as record-high electric vehicle (EV) sales,
which continue to negatively impact fossil fuel consumption.

Oil Prices Decline Amid Prospects of a Potential Nuclear Deal

Oil Prices Decline Amid Prospects of a Potential Nuclear Deal

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