Bearish sentiment on the market has been sending the oil price down to one-year low.
The cost of WTI crude oil has been tumbling down. On Tuesday, the price of a WTI barrel fell sharply to 95 US dollars and 60 cent.
And this drifting was not fuelled by a growing American currency alone.
The oil market was also influenced by the announcement of oil minister in Saudi Arabia - Ali Naimi - that “oil prices are still too high”. Saudi Arabia is planning to boost oil output further to bring the price of “black gold” lower.
The price of Brent crude oil dwindled by 2.5 US dollars to the level of 110 US dollars and 60 cent per barrel. The downside risks to the oil price are balanced by news on Iranian oil embargo.
Yesterday, shortly after the US Secretary of State Hilary Clinton paid a visit to Delhi, the Indian government declared an intention to cut imports of Iranian oil by 20%. It should be noted that India is the third largest oil importer in Asia, so the decision does not look for Iran, as it implies tangible losses.
The authorities of Iran have not provided any comments yet, anticipating another round of negotiations in Vienna on May 13-14.