Oil prices extended their gains on Thursday, climbing by more than a dollar as peace talks between Iran and the United States remained deadlocked, and both nations continued to impose restrictions on trade flows through the Strait of Hormuz.
اضافة اعلان
Brent crude futures rose $1.26, or 1.2%, to $103.17 per barrel, after settling above $100 on Wednesday for the first time in over two weeks. U.S. West Texas Intermediate (WTI) crude futures rose $1.20, or 1.3%, to $94.16.
Both benchmarks closed more than $3 higher on Wednesday, fueled by a larger-than-expected decline in U.S. gasoline and distillate inventories and the lack of progress in peace negotiations.
"The oil market is reassessing the outlook with few signs of progress toward a resolution in the Persian Gulf," ING analysts noted in a memo. "Additionally, Iran’s seizure of two vessels attempting to transit the Strait of Hormuz suggests that shipping disruptions will persist."
While U.S. President Donald Trump extended the ceasefire at the request of Pakistani mediators, both Iran and the U.S. maintain restrictions on vessel passage through the Strait. Approximately 20% of the world’s daily oil and liquefied natural gas (LNG) supplies passed through the strait before hostilities erupted in late February following U.S. and Israeli strikes on Iran.
Iran seized two ships in the Strait of Hormuz yesterday, tightening its grip on the strategic waterway. Meanwhile, Trump has maintained the U.S. Navy's blockade of Iranian maritime trade. Mohammad Bagher Ghalibaf, Speaker of the Iranian Parliament and chief negotiator, stated that a full ceasefire would be "meaningless" unless the blockade is lifted.
Shipping and security sources reported yesterday that the U.S. military intercepted at least three Iranian-flagged tankers in Asian waters, redirecting them away from locations near India, Malaysia, and Sri Lanka.
By extending the ceasefire on Tuesday, Trump once again pulled back at the last minute from warnings to bomb Iranian power plants and bridges. White House Press Secretary Karoline Leavitt told reporters that Trump has not set a specific expiration date for the extended ceasefire.
Record High for U.S. Exports
Total U.S. exports of crude oil and petroleum products rose by 137,000 barrels per day (bpd) to a record 12.88 million bpd, as Asian and European nations ramped up purchases following disruptions linked to the Iran conflict.
The Energy Information Administration (EIA) reported on Wednesday that while U.S. crude oil inventories rose, gasoline and distillate stocks fell. Crude inventories increased by 1.9 million barrels, compared with analysts' expectations in a Reuters poll for a 1.2 million-barrel drop.
Gasoline stocks plunged by 4.6 million barrels, far exceeding the projected 1.5 million-barrel draw. Distillate stockpiles fell by 3.4 million barrels, versus expectations of a 2.5 million-barrel decline.
— Reuters
