Good news for global oil markets

Global oil prices fell by more than 1% on Wednesday (July 1), reaching their lowest level in four months, following reports of progress in talks between the United States and Iran.

According to Reuters, Brent crude futures dropped 1.89% to $71.57 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 1.32% to $68.58 per barrel.

President Donald Trump said that the U.S.-Iran negotiations in Qatar had made good progress. The talks in Doha are aimed at ensuring the safe resumption of shipping through the Strait of Hormuz and securing a lasting ceasefire.

U.S. Vice President JD Vance said that oil shipments through the strategic waterway have returned to pre-conflict levels.

Although U.S. crude oil inventories fell last week to their lowest level since 2018, expectations of stable global supply have continued to put downward pressure on oil prices.

A Reuters report also said that the OPEC+ alliance is expected to consider increasing oil production further from August at its meeting scheduled for Sunday.