Oil prices reverse course and fall.

VTV.vn - World oil prices fell by more than $1 on February 5th after the US and Iran agreed to hold talks in Oman on February 6th.

This move helps to alleviate concerns about a potential military conflict that could disrupt supplies from the key oil-producing region in the Middle East.

Accordingly, Brent crude futures fell $1.31 (1.89%) to $68.15 per barrel at 2:54 PM (Vietnam time). West Texas Intermediate (WTI) crude fell $1.24 (1.90%) to $63.90 per barrel.

Earlier, the market saw oil prices rise by about 3% on February 4th due to rumors that negotiations were at risk of collapsing. However, officials from both sides later confirmed that the meeting would still take place despite deep disagreements over the topics to be discussed.

Mukesh Sahdev, CEO of energy consulting firm XAnalysts, believes oil prices fell due to easing geopolitical risks following news of the talks. However, he cautioned that the meeting could further highlight differences between the parties and that risk premiums could soon rise again.

Despite negotiations, the market remains cautious about the risk of US President Donald Trump carrying out his threats to attack Iran – the fourth-largest producer in the Organization of Petroleum Exporting Countries (OPEC). The biggest concern is the disruption of oil flows through the Strait of Hormuz, which carries about one-fifth of the world 's oil consumption.

Besides geopolitical factors, oil prices were also pressured downwards in this session due to the strengthening US dollar. Meanwhile, a report from the US Energy Information Agency (EIA) released on February 4th showed that US oil reserves decreased last week due to the impact of snowstorms. However, this information was not enough to reverse the current downward trend of "black gold".

Source: https://vtv.vn/gia-dau-dao-chieu-giam-100260205175010775.htm