The core factor driving the sharp drop in oil prices comes from the rapid settlement of the geopolitical risk premium. Trump announced that the US and Iran will resume negotiations on August 3, and said that the Strait of Hormuz already has an agreement framework. This signal enabled large geographical risk premiums previously included in oil prices due to the blockade of the Strait of Hormuz to be released centrally in a short period of time. Meanwhile, OPEC issued a statement on August 2. The seven major OPEC+ oil producers decided to increase crude oil production by 188,000 barrels per day in September, for the sixth consecutive month. Short-term suggestions are mainly wait-and-see. Currently, there is a lot of fluctuation, so proceed with caution.

The core factor driving the sharp drop in oil prices comes from the rapid settlement of the geopolitical risk premium. Trump announced that the US and Iran will resume negotiations on August 3, and said that the Strait of Hormuz already has an agreement framework. This signal enabled large geographical risk premiums previously included in oil prices due to the blockade of the Strait of Hormuz to be released centrally in a short period of time. Meanwhile, OPEC issued a statement on August 2. The seven major OPEC+ oil producers decided to increase crude oil production by 188,000 barrels per day in September, for the sixth consecutive month. Short-term suggestions are mainly wait-and-see. Currently, there is a lot of fluctuation, so proceed with caution.