After Tuesday’s sharp rise, oil prices fell below the $100 per barrel mark again. Markets are reacting to the US peace plan for Iran and a possible ceasefire.
Oil prices continue to fluctuate wildly. After an increase of almost 5% on Tuesday (24/3), they fell by around 4% on Wednesday, with the price of Brent slipping below USD 100 per barrel (159 litres). The mood in the markets was influenced by the latest news that the US handed over a 15-point peace plan to Iran. This has increased the chances of easing the current problems in the supply of oil and gas from the countries of the Middle East. It was reported by the Reuters and Bloomberg agencies.
- Oil prices experienced sharp fluctuations in the markets.
- Brent fell below $100 per barrel.
- The US gave Iran a 15-point peace plan.
- Investors are expecting a possible ceasefire with Iran.
The price of Brent North Sea oil mixture for delivery in May reached USD 99.96 (EUR 86.38) per barrel by 7:22 a.m. CET. Compared to the previous closing, this means a decrease of USD 4.53 (4.34%). Shortly before, it fell to 97.57 USD/barrel.
Investors are waiting for a truce
The price of the American WTI light oil, the same as the May contract, reached USD 89.04/barrel. This represents a decrease of $3.31 (3.58%) from the previous close. Previously, it recorded a drop to 86.72 USD/barrel.
“Expectations have increased that a truce will be concluded, and market developments are also affecting profit-taking by investors,” said Hiroyuki Kikusawa, chief strategist at Nissan Securities Investment. “However, it remains uncertain whether the negotiations will be successful,” he added.
US President Donald Trump said on Tuesday that “the US is making progress in negotiations to end the war with Iran”. In addition, several sources reported that Washington sent Iran a 15-point plan to settle the conflict. According to Israeli media, the plan includes ending Iran’s nuclear program as well as opening the Strait of Hormuz. However, some analysts are skeptical about the progress of such talks and expect market volatility to continue.
