Oil Prices Slide 3% as Hopes for Iran Peace Deal Grow
Pushes to Restore Russian Gas Flows to Europe What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Crude oil prices started the week with a dip on renewed optimism about a possible peace deal between the United States and Iran, following reports about mediation talks between Iran and Qatar over the weekend.
At the time of writing,Brent crudewas trading at $109.82 per barrel, andWest Texas Intermediatewas changing hands for $100.57 per barrel, despite a statement by Iran’s Foreign Minister Abbas Araqchi that said Tehran was prepared for "both defence and diplomacy", ascitedby Reuters.
ING commodity strategists, meanwhile,notedseparate reports about President Trump signaling he was ready to “give diplomacy a chance” but added that “The price action in oil in recent weeks reflects a market increasingly bracing for the potential for more hostilities between the US and Iran.” Besides, Trump has also indicated in recent days that he was ready to resume hostilities.
“Lingering hopes of some form of diplomatic progress, combined with the absence of any meaningful military escalation over the weekend, have taken some of the immediate heat out of prices for now,” KCM Trade’s chief market analyst Tim Waterer said, as quoted by Reuters earlier today.
Whether these hopes are justified should become clear soon enough, and that will set the tone for oil prices for the rest of the year.
In case of an escalation, the price direction is clear enough.
and Israeli strikes on Iran, some of the upward potential would be gone.
The question is how much and for how long, assuming the Iranian-Qatari talks fail to result in a path to a firm peace agreement.
With Iran insisting that all its conditions for a peace deal must be met and the U.S.
repeatedly indicating it is disinclined to do that, chances are a failure is the most likely outcome of those talks.
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Pushes to Restore Russian Gas Flows to Europe What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Iran’s Oil Reserves Run Dry as 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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