Oil Prices Fall as Iran Renews Nuclear Commitment and OPEC+ Production Increase Expected
Oil prices witnessed a decline during trading on Friday, July 4th, influenced by Iran's renewal of its commitment to the Nuclear Non-Proliferation Treaty, in addition to expectations of major producers agreeing to increase production during their meeting this week.
According to data, Brent crude futures fell by 0.32% (22 cents) to reach $68.58 per barrel, while West Texas Intermediate crude dropped by 0.18% (12 cents) to $66.88. Analysts attributed the reduced liquidity partially to the Independence Day holiday in the United States.
This decline followed reports from the news site Axios that Washington plans to meet with Iran next week to resume nuclear talks. Iranian Foreign Minister Abbas Araghchi affirmed Tehran's commitment to the nuclear treaty, despite passing a law suspending cooperation with the International Atomic Energy Agency just one day before his statements.
Vandana Hari, founder of Vanda Insights energy market analysis company, commented, "Reports of the resumption of nuclear talks between the United States and Iran, along with Araghchi's assurances, significantly reduced the risks of a new military escalation."
She added that market reactions may be delayed until Monday after the long weekend holiday in the United States, especially with anticipation of the OPEC+ decision on Sunday, expected to approve a production increase of 411,000 barrels per day for August.
Reuters quoted four OPEC+ delegates stating that the group is preparing to agree on the mentioned production increase as part of its efforts to regain market share.
In a related context, US trade policy faces uncertainty as the temporary suspension of expected tariff increases nears its end after 90 days. Washington is set to send letters today to 10 countries specifying new duty rates ranging from 20% to 30% on imports, according to statements by President Donald Trump before his departure to Iowa.
The deadline expires on July 9th without trade agreements with major entities such as the European Union and Japan.
