On July 27, world oil prices fell sharply in the first trading session of the week, in which Brent oil on the ICE (London) exchange lost more than 7% at one point, while US WTI oil fell more than 5%, reflecting the cautious sentiment of investors in the face of changes in geopolitical prospects and supply.
According to trading data, at 1:01 AM on July 27 (Moscow time), Brent oil for September 2026 delivery fell 7.44%, to 89.58 USD/barrel. This is the lowest level recorded in the morning trading session of July 27.
By 7:45 am (Moscow time), the decline narrowed, but Brent oil prices were still 5.07% lower than the previous session, trading at 91.87 USD/barrel.
Meanwhile, WTI crude oil for August 2026 delivery fell 5.34%, to 84.54 USD/barrel.
The plunge in oil prices took place just days after Brent oil surpassed the 100 USD/barrel mark due to concerns that conflict in the Middle East could disrupt global supply. However, signals showing that tensions between the US and Iran are temporarily cooling down have caused investors to adjust expectations, thereby promoting profit-taking activities in the oil market.
In addition to geopolitical factors, the market is also focusing its attention on the policy meeting of the US Federal Reserve (Fed) this week. The Fed's decision on interest rates is assessed to significantly affect global economic growth prospects as well as energy consumption demand.
The sharp drop in oil prices also partly eases concerns about inflationary pressure in many economies. In recent months, energy price fluctuations have always been one of the important factors affecting the monetary policy of central banks as well as the prospects for world economic recovery.
However, experts predict that the oil market will still fluctuate strongly in the coming time due to the simultaneous impact of geopolitical factors, supply from major producing countries and the growth prospects of the global economy.
