Oil rebounds on Iran peace deal uncertainty and inventory drawdowns
Oil prices increased slightly as investors reacted to ongoing peace talks between the U.S. and Iran. Supply constraints and significant drawdowns in U.S. inventories contributed to this rebound. Analysts remain cautious, noting that the situation in the Strait of Hormuz continues to pose risks to global oil supply.
- ▪Brent crude futures rose 0.4% to US$105.42 a barrel, while U.S. West Texas Intermediate futures increased by 0.5% to US$98.76.
- ▪The U.S. Energy Information Administration reported a record drawdown of nearly 10 million barrels from the Strategic Petroleum Reserve last week.
- ▪Iran announced the establishment of a new authority to control the Strait of Hormuz, which is crucial for global oil shipments.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountOil prices edged higher on Thursday, as investors monitored peace talks between the United States and Iran, while supply tightness and U.S. inventory drawdowns provided some support.Brent crude futures rose 40 US cents, or 0.4 per cent, to US$105.42 a barrel by 3:09 a.m. ET, and U.S. West Texas Intermediate futures were up 50 US cents, or 0.5 per cent, at US$98.76.Both benchmarks dropped around 5.6 per cent on Wednesday to their lowest in more than a week after President Donald Trump said talks with Iran were in the final stages.“Prices came under pressure when markets priced lower immediate escalation risk in the Middle East, but the rebound shows traders are not ready to remove the supply-risk premium…
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