Oil Prices Plunge Below $100 on Iran Deal Optimism
More Tankers Make It Through the Strait of Hormuz Josh Owens is the Content Director at Oilprice.com and a veteran energy journalist with over a decade of experience covering global energy markets and geopolitics.… Oil prices plunged in early Asian trade on Monday following reports over the weekend that a deal to reopen the Strait of Hormuz was in its final stages.
At the time of writing, both oil benchmarks had fallen by more than 5%, withBrentbreaking back below $100 to trade at $98.27, whileWTIfell to $91.63.
Optimism around a deal was tempered somewhat on Sunday when President Trumppostedon social media that he had informed his representatives "not to rush into a deal".
administration official thenaddedthat, while progress had been made, the deal would not be signed on Sunday.
The deal itself would aim to reopen the Strait of Hormuz, end the war, and see Iran give up its enriched uranium.
The first stage of the agreement would be a 60-day extension of the ceasefire, during which time traffic would resume through the Strait, and nuclear negotiations would continue.
Iranian news agency Tasnim reported that the number of vessels transiting the Strait could return to pre-war levels within 30 days if an agreement is reached.
The deal wouldincludean end to the war between Israel and Hezbollah, although Israeli Prime Minister Netanyahu emphasized that "any final agreement with Iran must eliminate the nuclear danger".
Spokesperson for the Iranian Ministry of Foreign Affairs Esmail Baghaeisaidthat while the memorandum of understanding was in its final stages, the details of the nuclear issue are not being discussed at this stage.
While an agreement would provide some much-needed relief to oil markets, it remains to be seen just how quickly oil flows could return to pre-war levels and how long it will take to bring damaged oil and gas infrastructure back online.
Even then, without a final agreement that includes a clear understanding of how traffic will flow through the Strait uninterrupted in the future, the geopolitical risk of another major energy crisis would remain.
U.S.-Iran Deal Delayed as Trump Refuses to “Rush” Agreement More Tankers Make It Through the Strait of Hormuz Josh Owens is the Content Director at Oilprice.com and a veteran energy journalist with over a decade of experience covering global energy markets and geopolitics.… Three Supertankers Carrying 6 Million Barrels Exit Strait of Hormuz Ukraine Hits 300,000-Bpd Gazprom Neft Refinery in Overnight Drone Strike Oil Prices Rise As Iran Draws Red Line on Uranium Venezuela Oil Exports Hit Seven-Year High The Oil Supply Shock Will Scar the World for Years Venezuelan Crude Will Eventually Lower US Gas Prices: Chevron Exec Oil Rallies Toward $120 As Middle East Supply Risks Spiral Is a Permanent 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% |
Comments
Post a Comment