CRUDE FUTURES SETTLE LOWER – Analysts say easing Strait Of Hormuz supply fears drive recent market decline
Oil prices fell as the West Texas Intermediate for August delivery lost 3.92 percent, to settle at 70.34 dollars a barrel on the New York Mercantile Exchange.
Brent crude for August delivery decreased by 4.33 percent, to settle at 73.74 dollars a barrel on the London ICE Futures Exchange.
Analysts point out that the core reason for the decline in oil prices is the significant easing of market concerns about the risk of supply disruptions in the Strait of Hormuz.
Despite the remaining differences in the U.S.-Iran negotiations, and the fact that the negotiations are expected to continue for a considerable period of time, the market has begun to factor in the expectation of easing geopolitical risks, and the focus is shifting from supply disruptions to supply recovery, according to analysts.
