Muscat: Oil prices continued their downward trend today, reaching levels not seen in four months, as diminishing supply concerns affected the market.
According to Oman News Agency, Brent crude futures decreased by 37 cents, or 0.5 percent, settling at $76.71 a barrel. Simultaneously, US West Texas Intermediate crude dropped by 36 cents, or 0.5 percent, to $72.85 a barrel. Both benchmarks experienced a roughly one percent decline yesterday, marking their lowest points since early March.
The recent pressure on oil prices is attributed to the United States granting Iran a 60-day sanctions waiver after preliminary discussions, permitting Tehran to sell oil. Additionally, the reduction in fighting in Lebanon has contributed to easing supply fears. Market participants are closely monitoring the pace at which Middle Eastern producers can restart exports and the potential increase in tanker traffic in the region.
In the United States, crude inventories saw a decrease of 765,000 barrels for the week ending June 19, as reported by market sources referencing American Petroleum Institute data released yesterday. This figure fell short of analysts' expectations, who had anticipated a larger decline of approximately 4.5 million barrels.