Oil prices are once again slumping, with West Texas Intermediate (WTI) crude, the U.S.
benchmark, falling to $89.21 U.S. per barrel.
The decline comes as oil traders consider the prospect of more Iranian oil supplies flooding the
market in coming weeks, and as the global economic outlook darkens.
Brent crude oil, the international standard, fell 2.3% to $95 U.S. per barrel on reports U.S.
President Joe Biden spoke with leaders from France, Germany and England about reviving a
nuclear deal with Iran, which could lead to the return of oil supplies from that Middle Eastern
country.
Crude oil has now given up all the gains it achieved after Russia invaded Ukraine in February as
fears of a global recession grow.
While Iran’s oil supply could return to the global market in coming weeks, production in
Kazakhstan continues to be disrupted, with crude loadings occurring at only one of three
Caspian Pipeline Consortium terminals.
Also, China’s Sichuan province extended industrial power cuts and activated its highest
emergency response over the weekend to deal with electricity supply deficiencies, adding to
fears of further economic weakness in the Asian nation of 1.4 billion people.
