Oil swung as merchants parsed competing headlines on the standing of negotiations between the US and Iran.
West Texas Intermediate inched down 0.3% to settle above $65 a barrel, whereas Brent ended the day beneath $71, because the US and Iran wrapped up a 3rd spherical of nuclear talks in Geneva, simply days forward of President Donald Trump’s deadline to strike a deal. Oman, a mediator within the discussions, mentioned that talks are set to proceed subsequent week in Vienna at a “technical degree,” allaying fears of imminent US army motion.
Including to a wave of bearish momentum simply forward of settlement, Axios reported {that a} US official described the conversations as “constructive,” an indication of cautious optimism that Iranian International Minister Abbas Araghchi echoed in remarks on state tv.
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Costs had gained earlier within the session after Iran’s state media reported that Tehran will not permit enriched uranium to go away the nation.
The enrichment of uranium stays a key sticking level for each side, with the Wall Road Journal reporting that Washington requested Tehran to ship any remaining nuclear gasoline to the US. Failure to achieve an settlement on this challenge raises the specter of potential US army motion within the Center East, a area that accounts for roughly one-third of the world’s crude oil provide.
Oil has been caught between bearish expectations of a worldwide glut this yr and heightened geopolitical considerations over Iran.
On Thursday, indicators of a softer market emerged, with a key gauge signaling oversupply in Brent crude for the primary time exterior of an expiry day since 2024. The unfold between Brent and WTI, or the distinction in value between two of the world’s key crude markers, widened to as a lot as $5.89 a barrel.
“North Sea markets present indicators of weak spot, however the market’s focus is on the end result of Geneva talks,” mentioned Giovanni Staunovo, a commodity analyst at UBS Group AG.
Trump mentioned he most well-liked a diplomatic resolution relating to Iran’s nuclear program however warned of penalties if no deal was reached. The US has imposed new sanctions on greater than 30 entities supporting Iranian oil and weapons gross sales, ramping up stress on Tehran forward of the talks.
As tensions simmer within the Center East, Saudi Arabia is on track to export essentially the most crude in nearly three years this month, whereas Iran has been quickly filling up tankers in current days. Mixed flows from Iraq, Kuwait and the United Arab Emirates are additionally increased.
The market can be maintaining an in depth eye on the end result of a scheduled OPEC+ assembly on Sunday set to determine provide coverage for April. Some delegates count on a modest manufacturing enhance, however one official mentioned the outlook was unclear as battle dangers between the US and Iran cloud the outlook.
Oil Costs
- WTI for April supply fell 0.3% to settle at $65.21 a barrel in New York.
- Brent for April settlement edged down 0.1% to settle at $70.75 a barrel.
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