Commerzbank: Even if US-Iran agreement is reached, oil price downside will be limited

Odaily Odaily reported that oil prices have been oscillating within a range overall as traders await the latest developments in US-Iran peace talks. Earlier clashes between the two sides heightened market concerns over an already fragile ceasefire. Analysts at Commerzbank said: "Even if an agreement is reached, the downside for oil prices could be limited, as the regional situation remains fundamentally unstable, and production and exports in the region can only be gradually restored." "In any case, the Strait of Hormuz is likely to remain a key bottleneck in the short term, which is sufficient to support a risk premium." Both major benchmark crude oil contracts are expected to record a decline of over 7% this week. (Jin Shi)