(New York) Oil prices fell Friday after U.S. President Joe Biden reported progress in negotiations on a ceasefire in Gaza that would significantly reduce tensions in the Middle East.
The price of a barrel of North Sea Brent crude for delivery in September fell by 0.43% to close at $85.03.
The barrel of American West Texas Intermediate (WTI), with maturity in August, fell by 0.49% to 82.21 dollars.
Black gold traded in the green for a long time, with WTI gaining up to 1.35% before falling at the end of the session.
For Bart Melek of TD Securities, this turnaround is mainly due to the communication of Joe Biden, who indicated that Israel and the Palestinian Islamist movement Hamas had each validated the framework presented by Washington to achieve a ceasefire.
“There is still work to be done and these issues are complex,” the American head of state wrote on X (ex-Twitter), but “my team is making progress.”
“The instability in the Middle East played a role in the recent rise in prices,” Melek said, “and now we see those gains dissipating.”
For the analyst, the geopolitical risk premium adds another $3 to $5 per barrel to Brent prices.
In addition, operators are seeing crude oil demand growth gradually slowing.
On Thursday, the International Energy Agency (IEA) slightly lowered its demand forecast for 2025, a decision justified by the deceleration of global growth, progress in energy efficiency and the rise of electric vehicles.
The decline in prices on Friday was limited by the weakening of the dollar, the currency most used for oil trading, as well as by hopes of a cut in the key rate by the American central bank (Fed) in September, which would stimulate demand.
Another supporting factor, according to Hargreaves Lansdown analyst Derren Nathan, was expectations of further economic support measures by the Chinese government, as the latest import figures confirmed the fragile health of Chinese domestic demand.