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Ulviyya Poladova

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Following US President Donald Trump’s remarks at the White House that large volumes of oil were being transported through the Strait of Hormuz, global oil prices declined.

Early today, Brent crude on the London Stock Exchange fell 1.16% to $96.89 per barrel. On the New York Stock Exchange, Light crude dropped 1.42% to $89.14 per barrel.

US media reported that around 20 million barrels of oil had passed through the Strait of Hormuz. However, experts say this volume is not sufficient to have a significant impact on global oil prices.

Analysts also note that the decline in oil prices below $100 per barrel does not necessarily indicate the beginning of a sustained downward trend. The continued disruption in the Strait of Hormuz has created serious challenges for global oil supplies, while several other factors are also affecting the market.

One of these factors is the decline in US oil reserves to below 50%. The United States is currently seeking to replenish its stocks.

JPMorgan has revised its previous forecast, saying oil prices could return to the $100-per-barrel level rather than $90, while inflation could reach 4%. The bank’s analysts believe that oil prices will remain elevated if the United States and Iran fail to reach an agreement. At present, however, the two sides remain far from reaching a deal.