Oil price volatility: Brent crude falls below $90

PARAGRAPH 1 --- What happened: Brent crude oil prices, the global benchmark, have fallen below $90 per barrel, reaching levels last seen before the U.S.-Iran conflict in 2019. This decline, driven by increased supply and reduced geopolitical risk, occurred despite Brent's peak of $119.50 in March 2022. Prices dropped sharply on August 4, 2022, following Goldman Sachs' prediction of Brent trading in the $80-$90 range until a new nuclear deal or conflict escalation.

PARAGRAPH 2 --- Market impact: The oil price drop has affected energy stocks, with European shares rebounding as Brent fell below $100. Companies like Energy Transfer and Enbridge, with "toll road" pipelines, remain profitable despite choppy oil prices. However, the decline may impact oil producers' profits and could lead to reduced capital expenditure, affecting the broader energy sector.

PARAGRAPH 3 --- What to watch next: Investors should monitor Brent's reaction to the upcoming OPEC+ meeting on September 5, 2022, which could influence production decisions. Additionally, the progress in U.S.-Iran nuclear deal negotiations will be crucial, as any breakthrough could further impact oil prices. Lastly, keep an eye on key economic indicators, such as U.S. inflation data on September 13, 2022, which may influence oil demand forecasts.