The reasons for the decline of crude oil
Oil markets have witnessed a significant decline in prices since the beginning of the week, as crude oil futures fell by more than 4%, to reach about 60 dollars per barrel on Thursday, influenced by fears of an oversupply amid news about the possible return of Iran to the global oil market.
The Iran-United States Agreement
Recent reports have shown that Iran is open to reaching an agreement with the United States that may lead to the easing of sanctions imposed on it, reinforcing expectations of an increase in the global supply of crude if restrictions on its oil exports are lifted.
Saudi Arabia also expressed its support for the nuclear negotiations between Washington and Tehran, expressing hope for positive results.
Oversupply
Data from the US Energy Information Administration revealed a sudden rise in domestic crude oil inventories, with reserves increasing by about 3.454 million barrels last week, while private sector reports indicated an even larger increase of 4.3 million barrels, adding to downward pressure on prices.
OPEC
OPEC has lowered its forecast for the growth of oil supplies from outside the OPEC alliance, including the United States, to 800 thousand barrels per day this year, compared with previous estimates of 900 thousand barrels.
However, the coalition's plans to increase production still support fears of a rise in oil supply, which could limit the price recovery in the near term.
