Qatar and Pakistan: High-level committee agrees on roadmap to final deal within 60 days
The US-Iran peace talks took place on Sunday in Bürgenstock, Switzerland, with delegations from Iran, the United States, Qatar, and Pakistan participating. On Monday, Qatar and Pakistan issued joint statement on conclusion of negotiations, saying that talks conducted in positive, constructive atmosphere
"High Level Committee has agreed upon a roadmap towards reaching a final deal within 60 days, laying the foundation for the immediate commencement of further technical talks," reads the Pak-Qatar joint statement on US-Iran talks in Burgenstock.
Meanwhile, Pakistani and Qatari mediation yields significant progress to end Lebanon conflict, adding that oil and petrochemical exports exempt, blockade removed, some frozen assets freed, major reconstruction and development plan initiated for Iran.
Key quotes from joint statement
Encouraging progress includes creation of mechanism for further technical talks.
Establish high-level committee for mediation oversight following MoU.
Chief negotiators to provide regular updates to high-level committee.
High-level committee agrees on roadmap to final deal within 60 days.
Parties agreed to establish de-confliction cell involving Lebanon, with mediator support to ensure termination compliance.
Market reaction
Crude oil prices attract some sellers following this headlines. At the time of writing, the West Texas Intermediate (WTI) is down 1.08% on the day at $75.60.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
