The price of Brent crude oil, a key benchmark for Angolan exports, dropped by 2.31% on Tuesday, closing at $79.55 per barrel in the London futures market.
This decline comes after a three-day rally that had pushed prices above the $80 mark.
The drop in Brent prices was driven by concerns on Wall Street regarding crude oil’s future outlook. Major banks, including Goldman Sachs and Morgan Stanley, recently revised their 2025 price forecasts downward, predicting average prices below $80 per barrel due to anticipated market surpluses.
Geopolitical tensions in the Middle East also played a role in the price decrease. Ongoing ceasefire negotiations in Gaza, coupled with recent conflicts between Israel and Hezbollah in Lebanon, have raised fears of potential disruptions to oil supplies from key producers in the region, such as Libya.
Meanwhile, investors are keeping a close eye on the U.S. Federal Reserve’s upcoming meeting in September.
Expectations that the Fed may announce an interest rate cut could potentially boost the U.S. economy and, in turn, increase demand for oil.
