NEW YORK – Global crude oil prices fell by almost 2% to their lowest level in two months as US officials indicated that further serious military action against Iran may not be required, alleviating concerns about additional Middle Eastern supply disruptions. Brent crude futures sank 2.1% to USD 90.64 per barrel, while West Texas Intermediate (WTI) fell 1.7% to USD 85.41 during Tuesday’s trade. Meanwhile, ongoing Russia-Ukraine peace talks and predictions of future US interest rate increases put pressure on petroleum markets. Despite the reduced geopolitical picture, the prolonged closure of the Strait of Hormuz causes supply uncertainty. Lower crude prices could have an impact on global refining margins, petroleum logistics costs, and traditional base oil pricing, thereby reducing the competitiveness of re-refined base oils (RRBO).
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(Source: Reuters; The Korea Times)