US "collapsed" Oil Prices

• 12.06.2025, 11:09

What's going on in the world markets?

Oil prices have fallen on the world markets. In the morning of June 12, futures for Brent fell by 49 cents, or 0.7% - to $ 69.28 per barrel. And West Texas Intermediate (WTI) - by 41 cents, or 0.6% - to $67.74 per barrel. In expert circles, this is associated with the U.S. decision to withdraw diplomatic staff, embassy employees and family members of military personnel from the Middle East on the eve of negotiations with Iran on its nuclear program.

Reuters reports Reuters. It is noted: rising tensions with Iran have increased fears of possible disruption of oil supplies.

"The oil price rise, with the cost of Brent exceeding $70 per barrel, was partly unjustified - the market reaction was excessive. ... The decline in prices looks logical and justified, but as long as the situation around the nuclear negotiations between the U.S. and Iran remains uncertain, the market will remain the so-called geopolitical premium - an additional risk that keeps the price of Brent above $ 65 per barrel," - stated in the material.

In addition, it is noted that the U.S. is preparing for the partial evacuation of its embassy in Iraq - because of the increased threat level in the region. At the same time, it is stressed that Iraq is "the second largest oil producer after Saudi Arabia in the Organization of Petroleum Exporting Countries (OPEC)".

The cost of oil was also affected by a larger than expected decline in its reserves in the United States. According to analysts:

They decreased by 3.6 million barrels last week.

It was previously forecasted to decrease by 2 million barrels.