Oil Has Biggest Quarterly Drop in Six Years
Oil prices had their biggest quarterly drop in six years. The drop was driven by easing supply problems and US-Iran peace talks.
Brent crude also had its biggest monthly drop since March 2020. US-Iran talks are expected in Doha, Qatar, on Tuesday.
Traders are watching the talks as something that could affect future oil prices. But Iran's Foreign Ministry said direct talks were not formally scheduled.
A Qatari spokesperson said US envoys would meet mediators and not Iranian officials directly. US envoys Jared Kushner and Steve Witkoff arrived in Doha on Tuesday.
An interim US-Iran peace deal was signed on June 18. That deal has been a key driver of falling oil prices throughout June.
Shipping through the Strait of Hormuz has recovered. Workarounds to the Strait of Hormuz also helped ease the loss of Persian Gulf oil supplies. Chinese crude imports also dropped and added to the quarterly price fall.
Key Terms 4
- Brent crude A major type of oil used as a global price benchmark
- Strait of Hormuz A narrow sea passage where much of the world's oil is shipped through
- quarterly drop A price fall measured over a three-month period
- envoys Officials sent to represent a country in talks abroad