Noida, Aug 6 (APAC Media): Crude oil prices dropped 1.4% to close at 7,108, as optimism over a possible agreement to restore access through the Strait of Hormuz outweighed renewed geopolitical concerns in the Middle East.
Brent crude futures edged down 0.08% to $79.46 a barrel, while U.S. West Texas Intermediate (WTI) crude slipped 0.3% to $75.00 a barrel. The decline followed a volatile trading session, with investors balancing improving diplomatic signals against persistent concerns over security risks in the Middle East.
U.S. President Donald Trump said negotiations with Iran were making good progress, while Qatar confirmed that a draft proposal U.S. President Donald Trump announced that negotiations with Iran were progressing well, and Qatar confirmed the preparation of a draft proposal.
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Reports also suggested Iran could allow European countries to participate in clearing mines from the Strait.
Separately, Saudi Arabia continued diplomatic efforts with Yemen’s Houthi movement through Omani mediation to prevent further escalation.
Speaking in Las Vegas, Nevada, President Donald Trump said the United States had been prepared to carry out what he described as “the biggest attack since World War II” before Iranian officials sought negotiations.
“We were all set for the biggest attack since World War II, and they called me and said, ‘Please don’t do it. Let’s talk,'” Trump said.
He added that he preferred reaching a diplomatic agreement with Iran rather than using military force, saying he would rather not see people killed. Trump also reiterated his longstanding position that Iran must not be allowed to acquire a nuclear weapon.
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The diplomatic developments overshadowed concerns after Yemen’s Houthi forces claimed responsibility for an attack on a Saudi vessel in the Red Sea.
Goldman Sachs reiterated its forecast that Brent crude is likely to trade in the $80-$90 per barrel range until either a formal U.S.-Iran agreement is reached or regional tensions intensify.
In the United States, crude oil production declined about 2% in May to 13.71 million barrels per day, while exports climbed to a record 5.73 million barrels per day for a second straight month, underscoring robust overseas demand.
However, weekly inventory data weighed on prices. U.S. crude stockpiles rose by 2.479 million barrels, contrary to market expectations for a draw, while refinery throughput declined. Gasoline and distillate inventories, meanwhile, posted larger-than-expected declines, indicating steady fuel demand.
On the supply side, OPEC+ approved a production quota increase of around 188,000 barrels per day from September, completing the rollback of its earlier voluntary output cuts.
Technically, crude oil remains under selling pressure, with open interest rising 11.86%, indicating fresh short positions entering the market. Immediate support is seen at 7,021, followed by 6,935, while resistance is placed at 7,253. A decisive break above this level could lift prices toward 7,397.
–ENDS–
Disclaimer: This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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