Oil Prices Tumble 4% on Iran Peace Optimism
Oil Prices Tumble 4% on Iran Peace Optimism 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 plunged by more than 4% early on Friday as the market hopes the U.S.
and Iran have made progress toward a peace deal.
As of morning trade in Europe, the international benchmark,Brent Crude, had slipped by 4.34% at $86.36, extending the losses from Thursday when U.S.
President Donald Trump called off a strike on Iran, claiming that a deal had been reached.
benchmark,WTI Crude, had dipped by 4.47% at $83.88.
Both benchmarks were headed to a three-month low amid one of the most optimistic signals about a deal coming from the U.S.
Iran’s state mediareportedon Friday that a draft of a U.S.-Iran memorandum of understanding on continuing talks includes the United States lifting the blockade while Iran opens the Strait of Hormuz within 30 days.
However, the 14-point draft also reportedly includes that final peace negotiations would not begin until the U.S.
suspends oil sanctions on Iran, lifts the naval blockade outside Hormuz, and releases half of Iran’s frozen funds.
The market is pinning its hopes on a re-opening of the Strait of Hormuz sooner rather than later, because one or two more months of near-paralysis of traffic would tip oil and fuel prices into new highs and weigh on economies.
Still, conflicting signals about a potential deal continue to emerge.
President Trump claimed on Thursday that the 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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