Oil prices continued their downward trend today, albeit at a slower pace.<\/p>\n
After tumbling 5% on Monday, Brent crude benchmark is trading at $82.72 a barrel, bringing it to the lowest levels since early March.<\/p>\n
Markets are now accounting for supply increase when the Strait of Hormuz reopens as part of the announced US-Iran peace deal.<\/p>\n
One fifth of the global oil shipment was passing through the vital waterway before the war.<\/p>\n
“I don’t expect the oil prices to be plunging lower at this moment in time,” market analyst Paul Sommerville told RT\u00c9’s Morning Ireland programme.<\/p>\n
“Brent is trading at around $83. If it went below $80, that would be quite a surprise at the moment.”<\/p>\n
The expert explains that markets are looking at several other things besides the reopening of the Strait of Hormuz – most importantly China replenishing its oil inventories.<\/p>\n
“One of the things that has been capping oil prices is the Chinese demand. China has been using their inventories to put a cap on oil prices, really helping the global economy,” he said.<\/p>\n
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