Crude Oil Trims Gains on US-Iran Deal Hopes
Crude oil prices traded near $94 per barrel on Thursday, trimming a surge that peaked at $97 amid signs that the US and Iran could be working to re-establish exports from the Persian Gulf. Reports suggested that US and Iranian negotiators were exploring a deal that would lift naval blockades against tankers crossing the Strait of Hormuz and ease US sanctions on the Iranian economy. Strikes on commercial vessels earlier this month had brought oil exports out of GCC countries to a near standstill. The supply disruption was compounded by attacks on the East-West pipeline in Saudi Arabia, which had been diverting 7 million bpd of crude to Red Sea ports. The prolonged halt of tanker flows from the region forced major OPEC members to cut oil production, with Saudi output recently dropping to its lowest level since 1990. Lower stocks from China risked buying from the world's top importer, while the US Strategic Petroleum Reserve (SPR) stands at a near-record low.
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Crude oil prices traded near $94 per barrel on Thursday, trimming a surge that peaked at $97 amid signs that the US and Iran could be working to re-establish exports from the Persian Gulf. Reports suggested that US and Iranian negotiators were exploring a deal that would lift naval blockades against tankers crossing the Strait of Hormuz and ease US sanctions on the Iranian economy. Strikes on commercial vessels earlier this month had brought oil exports out of GCC countries to a near standstill. The supply disruption was compounded by attacks on the East-West pipeline in Saudi Arabia, which had been diverting 7 million bpd of crude to Red Sea ports.
The prolonged halt of tanker flows from the region forced major OPEC members to cut oil production, with Saudi output recently dropping to its lowest level since 1990. Lower stocks from China risked buying from the world's top importer, while the US Strategic Petroleum Reserve (SPR) stands at a near-record low.