This is evidenced by data from Investing.
Around 1:45 p.m. Chisinau time, commodity prices had fallen 4.5% from the previous trading session’s closing level. By that time, the price of Brent had fallen to $83.43 per barrel, down $4.27.
Analysts attribute the sharp drop in the price of the benchmark crude oil grade to U.S. President Donald Trump’s changed rhetoric regarding the prospects of war in Iran. The White House chief stated his intention to conclude a peace deal as soon as possible and to secure the dismantling of the Middle Eastern country’s nuclear program.
The prospect of progress in negotiations between Washington and Tehran has encouraged stock market participants, easing their concerns about a long-term blockade of the Strait of Hormuz. Prior to the war in the Middle East, a significant portion of the oil supplied to the global energy market came through this route.
The prospects for a gradual normalization of shipping in the region’s key logistics artery have instilled optimism among traders and investors, which ultimately has been reflected in commodity prices. However, experts note that the risks of another escalation in the region could wipe out such optimism. In that case, a new spike in global oil prices is to be expected.
As a reminder, the National Energy Regulatory Agency (ANRE) uses exchange quotes in its daily calculations of fuel prices for the following day. In other words, if the trend continues, petroleum products in Moldova should begin to become cheaper tomorrow or the day after.
