Oil Prices Fall as Traders Bet on U.S.-Iran Deal
Oil Prices Fall as Traders Bet on U.S.-Iran Deal What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Oil prices dropped by around 4% early on Wednesday as hopes of a U.S.-Iran deal outweighed concerns about rapidly drawing inventories as the Strait of Hormuz remained closed on the back of fresh U.S.-Iran hostilities.
As of early Wednesday trade in Europe,WTI Crude, the U.S.
benchmark, is down by 4.32% at $89.83 per barrel.
The international benchmark,Brent Crude, had fallen 3.66% to $95.94, remaining below the $100 a barrel mark for the third consecutive day.
Traders and speculators appear hopeful, again, that the United States and Iran could be close to a framework agreement that would extend the ceasefire by 60 days and allow further negotiations on the re-opening of the Strait of Hormuz and Iran’s nuclear program.
“Oil prices are under pressure on Wednesday morning amid shifting expectations around a potential US?Iran deal, although risks remain elevated with ongoing tension near the Strait of Hormuz,” ING commodities strategists Warren Patterson and Ewa Manthey said in anoteearly on Wednesday.
“Prices are under pressure from improved sentiment around a potential US?Iran deal, even as hostilities continue and the Strait of Hormuz remains effectively closed.
Military activity persists near the strait, including US strikes and reported Iranian engagement,” the strategists noted.
of a “grave violation” of the ceasefire, following thenew U.S.
strikeson missile sites and boats in southern Iran, which the U.S.
Central Command described as “self-defense.” U.S.
Secretary of State Marco Rubio, who earlier this week played down the possibility of an imminent deal, said an agreement was still in the realm of possibility, but U.S.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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