Brent oil prices were stable as the European session got underway, trading around $95 per barrel. This price reflects some optimism that the situation in the Persian Gulf is moving towards normalisation, following reports that negotiations between the US and Iran are set to resume. The current price level reflects hopes that the Strait of Hormuz will soon reopen and that the region’s infrastructure will be protected from attacks under the terms of any eventual deal. This optimism is reflected not only in lower oil prices but also in greater risk appetite across stock markets, with S&P and Nasdaq futures reaching all-time highs. Against this backdrop, the price of a barrel is likely to remain close to current levels as we head towards the weekend and a new round of negotiations.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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