Oil prices rise amid doubts about US-Iran talks - Reuters
Kyiv • UNN
Brent crude rose to $98.41 amid supply concerns over the Strait of Hormuz. US oil inventories unexpectedly fell by 913,000 barrels.
Oil prices rose on Thursday as the market doubted that peace talks between the US and Iran could resolve the Middle East energy supply disruptions caused by the ongoing conflict. This was reported by Reuters, writes UNN.
Details
Brent crude futures rose $3.48, or 3.7%, to $98.41 a barrel as of 12:01 p.m. ET (16:01 GMT). US WTI crude futures rose $2.22, or 2.4%, to $93.51 a barrel.
Talks between the US and Iran have narrowed from aiming for a full peace deal to discussing an interim memorandum that would prevent a resumption of hostilities, two Iranian sources told Reuters on Thursday.
We remain skeptical of any quick resolution to this war. Whatever news you take, there is always an opposing view.
There was almost no reaction in the oil market after US President Donald Trump announced that Israel and Lebanon had agreed to a 10-day truce in a related conflict.
The US-Israel war against Iran has been described as the largest disruption to global oil and gas supplies in history due to restrictions on movement in the Strait of Hormuz, through which about 20% of the world's oil and liquefied natural gas flows normally pass.
Supply disruptions through the Strait of Hormuz have already begun to put pressure on global oil inventories.
There are no bombings at the moment, but the number of ships passing through the strait is no better than before the US blockade, which only exacerbates the reduction in global inventories, which has already been reflected in US data this week.
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According to government data, US crude oil inventories decreased by 913,000 barrels last week, while analysts expected an increase of 154,000. Gasoline and distillate inventories also decreased as countries seeking alternative supplies increased purchases from the US.
Possible resumption of peace talks
US and Iranian officials were considering a return to talks in Pakistan as early as this weekend. The Chief of Staff of the Pakistan Army arrived in Tehran on Wednesday as a mediator.
A source briefed by Tehran told Reuters that Iran could consider allowing free passage of ships through the Omani part of the Strait of Hormuz in the event of a deal that would prevent a new conflict after a two-week truce that began on April 8.
ING analysts estimate that approximately 13 million barrels per day of oil flows have been disrupted due to restrictions on movement in the strait, taking into account alternative routes and partial transit of tankers.
After the US announced a blockade of Iranian ports, which happened after the breakdown of peace talks, disruptions could intensify further, although some sanctioned tankers were still able to pass.