Oil prices fell on Thursday after rising 4% in the previous session, as Iran said it remained open to diplomacy to end the war with the United States.
Brent crude futures fell 94 cents, or 0.9%, to $102.13 a barrel, while West Texas Intermediate (WTI) crude futures dropped 59 cents, or 0.7%, to $91.56 a barrel.
A senior Iranian official told Reuters on Wednesday that Iran and the United States remained far apart on how to end the war, but diplomatic efforts should continue. The comments came after the Iranian president told the UN General Assembly that Tehran would never yield to US pressure.
The official said Tehran was considering Washington’s response to its proposals for ending the war. The proposals focus on lifting the US naval blockade of Iranian ports and reopening the Strait of Hormuz.
The official said the reopening of the Strait of Hormuz and lifting the US naval blockade were discussed during indirect talks on Tuesday.
Earlier Wednesday, Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said the Strait of Hormuz would not be reopened unless Iran’s conditions were met.
US Secretary of State Marco Rubio told reporters Wednesday that reaching an agreement with Iran would require hard work over a period of time, adding that President Donald Trump also had military options.
Meanwhile, traders were assessing potential restrictions on diesel exports.
Ultra-low-sulfur diesel futures fell nearly 5% in midday trading after Politico reported that the Trump administration was preparing plans for a 90-day ban on diesel exports. The White House denied the report.
However, Bloomberg later reported, citing sources, that Energy Secretary Chris Wright had asked oil industry leaders to prepare for possible US restrictions on diesel exports during phone calls held late Tuesday.
Wright said earlier Wednesday that a diesel export ban would not be effective, despite Trump saying he would support such a measure. Analysts and market observers warned that such a move would do little to ease rising energy prices, while potentially worsening the global supply crisis and causing further disruption to economies.
At the same time, US crude oil inventories rose by 3 million barrels to 426.4 million barrels last week, according to the Energy Information Administration. Analysts polled by Reuters had expected a decline of 641,000 barrels. Fuel inventories fell.
Source: Reuters
