Oil Prices Fall as Markets Watch Iran-U.S. Talks and Inventory Data
Cue Writer
Oil prices fell more than 1% Wednesday as traders weighed indirect Iran-U.S. talks and waited for official U.S. crude inventory data, according to Reuters.
Reuters reported that Brent crude was down $1.14, or 1.6%, at $71.81 a barrel at 0859 GMT. U.S. West Texas Intermediate crude fell $1.11, or 1.6%, to $68.39 a barrel.
The decline came as technical talks continued in Doha, with Qatar and Pakistan serving as mediators. Reuters reported that U.S. representatives were expected to meet with mediators rather than Iranian officials directly, keeping markets focused on whether diplomacy can further reduce the risk of supply disruption.
Oil had already posted steep second-quarter losses after fears eased over prolonged interruptions in the Middle East and tanker traffic through the Strait of Hormuz began recovering. The waterway remains a key route for global oil shipments, making developments there important for fuel prices and inflation expectations.
Market participants were also watching U.S. supply figures. Reuters cited American Petroleum Institute data showing crude inventories fell by 6.1 million barrels last week, while the official Energy Information Administration report was due later Wednesday.
For consumers and businesses in the Virgin Islands and across the Caribbean, swings in global crude prices can feed into transportation, shipping and electricity costs. Lower oil prices can ease some pressure, but renewed geopolitical risk or a sharp inventory draw could quickly change the outlook.
Source: Reuters