New Delhi, July 28 (NVI): In a sign of relief, international crude oil prices declined further today amidst hopes of a diplomatic breakthrough between the United States and Iran which could ease energy flows across the West Asian region.
While Brent crude futures declined $0.78, or 1 per cent, to $88 a barrel, US West Texas Intermediate crude fell $0.88, or 1.1 per cent, to $82 a barrel.
Both benchmarks touched their lowest levels in more than a week during the session.
The decline followed a sharp sell-off in the previous session.
Brent crude futures had dropped $8.42, or 8.7 per cent, to settle at $88.36 a barrel, their lowest level since July 17.
WTI futures fell $6.70, or 7.5 per cent, to close at $82.61 a barrel, the lowest since July 16. Combined, crude oil prices have fallen about 10 per cent over two sessions as the market reassesses the geopolitical risk premium built into prices during the conflict.
The crude prices fell as US President Donald Trump said Washington was engaged in talks with Iran and indicated that a resolution remained possible.
However, he also warned that US strikes could resume if negotiations failed. Iran has issued similar warnings over possible retaliation.
The prospect of negotiations has reduced immediate fears of a broader disruption to oil supplies and key maritime routes. (NVI)
