Crude oil prices fell on Tuesday after rising sharply a day earlier, as renewed diplomatic efforts between the United States and Iran raised hopes of an easing of tensions and the possible reopening of the Strait of Hormuz.
Brent crude declined to about $105 per barrel on Tuesday, from as high as $107 recorded on Monday, while West Texas Intermediate, WTI, fell to about $92 per barrel.
The latest movement followed a sharp rise in oil prices over the weekend and on Monday amid reports that United States President Donald Trump had rejected Iran’s proposal for a seven-day truce.
The proposal was reportedly made during the 81st United Nations General Assembly in New York. Trump was quoted as rejecting the offer when speaking to reporters outside the White House.
Meanwhile, Qatar is reportedly brokering fresh talks between the United States and Iran as efforts continue to ease the conflict and reopen the Strait of Hormuz, a major route for global oil shipments.
According to reports, Qatari mediators are expected to meet Iran’s Foreign Minister, Abbas Araqchi, and representatives of the United States in New York.
The discussions are expected to focus on an amended seven-day proposal from Tehran, which includes an end to hostilities, sanctions relief and the reopening of the Strait of Hormuz in exchange for renewed negotiations on Iran’s nuclear programme.
The movement in international crude prices comes as Dangote Refinery, MRS and other filling stations in Nigeria have reduced petrol prices by between N20 and N25 per litre.
