Oil prices drop more than $1 as hopes for progress in peace talks over the Middle East and the Russia-Ukraine wars pressure the market, Reuters reports.
Brent futures have lost $1.14, or 1.2 per cent, to $91.62 a barrel by 0141 GMT. US West Texas Intermediate (WTI) crude futures have fallen $1.04, or 1.2pc, to $85.49. Brent rose about 1.4pc and WTI 0.6pc on Wednesday after hitting two-month lows the previous day.
“Markets are falling on expectations that behind-the-scenes efforts are underway to secure a ceasefire between Russia and Ukraine and that it is unlikely the Iran war will escalate ahead of the US-China summit next week,” says Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
“However, given the uncertainty surrounding the Strait of Hormuz, the markets are unlikely to suffer a significant collapse,” Kikukawa says.
