Friday has seen the oil market falling. Brent oil this morning was trading at $55.2 per barrel. The price of WTI with September delivery was on offer for $48.8. Amongst the reasons for this drop in prices are investor woes with regards to weak future demand for oil. The stagnation of the global economy could lead to a further fall in demand and the conditions for growth in the market supply of commodities could be critical for oil.
On Monday the UN Security Council accepted the resolution put forward regarding Iran and the G6. All that’s left now is for US Congress to vote to accept the agreement in the next 60 days. At the moment Congress is negative and even if they vote against the removal of sanctions, the last word still remains with Obama. He could veto Congress’ decision. With Obama’s term in office coming to an end, anything could happen.
The price of oil will continue falling until the end of the day. Brent will trade $54.5-55.5 and WTI will be $48-49 per barrel.