The barrel price of Brent oil, which rose to $98.08 yesterday, ended the day at $94.25.
The forward barrel price for Brent oil fell by around 4.92 percent compared to today's deadline at 7:12 p.m. and reached $89.61. At the same time, West Texas Intermediate (WTI) crude oil sold for $86 per barrel.
The fall in oil prices was influenced by the strengthening of the possibility of a diplomatic solution between the USA and Iran and the expectation that tensions in the Middle East would not escalate further.
In addition, market participants began to price in the expectation that the oil market could experience excess supply in the future, putting downward pressure on prices.
US President Donald Trump said in his statement that the deal process with Iran was progressing “very well” and said: “We will have truly won when we declare complete victory in the next two weeks.” he said.
On the other hand, the Israeli army's announcement that it had lifted much of the security restrictions imposed following the conflicts with Iran reinforced expectations that tensions would calm and put downward pressure on prices.
Another development that supported optimism in the markets were the statements made by Lebanese President Joseph Aoun. Avn explained that at this stage of US-brokered contacts with Israel, non-aggression or security agreements are on the agenda and that the ultimate goal is to end the state of hostility between the two countries.
Experts believe that easing inflation pressures in the US, the world's largest oil consumer, could allow the US Federal Reserve (Fed) to consider cutting interest rates in the future.
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