Oil Prices Decline Amid Easing Tensions Between the U.S. and Iran and Strong Dollar Impact
February 3, 202641 VistasTiempo de lectura: 2 minutos
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Oil prices fell for the second consecutive day on Tuesday, driven by market anticipation of easing tensions between the United States and Iran, coupled with the strengthening U.S. dollar that has increased pressure on global crude prices.
Trading Figures: Brent and West Texas Intermediate See New Losses
Brent crude futures dropped 0.5%, reaching $65.91 per barrel at 03:30 GMT. Similarly, U.S. West Texas Intermediate crude also fell by the same margin, now trading at $61.83 per barrel, continuing the downward trend that began in the previous session.
Political Statements Cast a Shadow Over the Market
This decline followed a significant drop of over 4% in oil prices during Monday's trading, after U.S. President Donald Trump indicated that Iran is engaging in "serious" discussions with Washington, bolstering expectations for a reduction in tensions with the OPEC member.
In this context, sources from both the U.S. and Iran revealed expectations of resuming nuclear talks on Friday in Turkey, a move that could pave the way for a new agreement aimed at alleviating geopolitical tensions in the region.
U.S. Warnings Heighten Market Expectations
Despite signs of easing tensions, Trump warned that the movement of large U.S. warships towards Iran could lead to "serious consequences" if diplomatic efforts fail, keeping markets cautious and attentive to political developments.
Market Fluctuations Driven More by Sentiment Than Fundamentals
Priyanka Sachdeva, head of market analysis at Philip Nova, noted that the sharp movements in oil prices in recent sessions reflect psychological factors and investor sentiment rather than actual changes in supply and demand fundamentals.
She added that gains seen in the markets last week quickly faded amid increased volatility in high-risk assets, indicating that the absence of any new geopolitical escalation, along with disparities in macroeconomic data, contributed to oil's inability to maintain its gains.
