Brent crude hit its lowest level since late February, and the market is facing two downward pressures

During the European session on Wednesday (August 17), international oil prices turned lower and the prospect of a global recession continued to weigh on the market, although a sharp drop in U.
S.
gasoline inventories capped the decline
.
The prospect of resuming negotiations on the Iranian nuclear agreement also puts pressure
on the oil market.

Weak U.
S.
housing start data released overnight raised fears of a potential global recession, with the two contracts closing down more than 2.
5 percent
.
Despite the second consecutive week of declines in U.
S.
gasoline inventories, the oil market is expected to remain under pressure
.

Data released overnight by the American Petroleum Institute (API) said U.
S.
crude oil and fuel inventories fell
in the latest week.
In the week ended Aug.
12, crude inventories fell by about 448,000 barrels, gasoline inventories by about 4.
48 million barrels, and distillate inventories by about 759,000 barrels
.

Craig Erlam, senior market analyst at Oanda, said: "There are many bearish factors and downside risks at the moment, from the threat of a recession to the possibility
of restarting the nuclear deal between the United States and Iran.
However, crude oil has fallen sharply, and we must not forget that the supply and demand of crude oil are still very tight
in the short term.
”

After Tehran called on Washington to show flexibility, the European Union and the United States said on Tuesday they were studying Iran's reaction
to the "final" deal proposed by the bloc.
Analysts said oil supplies could increase if negotiations aimed at reviving Iran's 2015 nuclear deal with world powers succeed as sanctions on Iran's oil exports are lifted
.

Helima Croft, an analyst at RBC Capital, said in a research note: "When NYMEX crude oil futures are well above $100, the resumption of the Iran nuclear deal seems to be a topic to look forward to in the medium term, and in the current price level and geopolitical security background, this may not be very noticeable
.
" We note, however, that the EU may be more impartial to reach a deal
given that the embargo on Russian oil imports will be fully implemented in December and the continent faces a looming supply shortage.
”

The EU will stop buying all Russian crude imports by sea from early December and ban all Russian refined products
in two months.
The failure of negotiations to restart the Iranian nuclear agreement will bring new risks
of regional war.
If Tehran's nuclear weapons development capabilities cannot be stopped through diplomatic means, Israel will threaten military action
against Iran.