Oil prices have plummeted amid reports of a possible resumption of Iran's negotiations with the U.S. and Israel
Global oil prices have fallen amid expectations that Iran may resume negotiations with the U.S. and Israel to end the conflict that led to the blockade of the Strait of Hormuz.
This was reported by Reuters.
Brent crude futures settled at $94.79 per barrel, down $4.57, or 4.6%, from the previous day. Meanwhile, U.S. West Texas Intermediate crude oil closed at $91.20 per barrel—a drop of $7.80, or 7.87%.
However, during the previous trading session, both benchmarks had shown gains: Brent rose by more than 4%, and WTI by nearly 3% following the start of the U.S. military blockade of Iranian ports.
“It seems there is hope in the market for a better outcome. This means the market has already factored in many of the changes we’ve seen,” noted John Kilduff, a partner at Again Capital.
Analysts emphasize that Brent prices are more sensitive to global supply disruptions than WTI.
“The resumption of flows through the Strait of Hormuz remains the most important variable in easing pressure on energy supplies, prices, and the global economy,” the IEA noted in its report.
Against this backdrop, the International Energy Agency has significantly revised its oil market forecasts. Specifically, the forecast for demand growth in 2026 has been reduced by 80,000 barrels per day, while the expected increase in supply now stands at 1.5 million barrels per day.
At the same time, according to trader estimates and Reuters calculations, planned exports of Russian petroleum products from the Black Sea port of Tuapse in April rose by approximately 60%—to 1.27 million metric tons, compared to 0.794 million tons in the previous plan.
Global oil prices are likely to peak within the next few weeks. This could happen after shipping resumes through the Strait of Hormuz.
In March, global oil refining volumes fell by 5 million barrels per day to 77.1 million bpd.
OPEC oil exports plummeted to a record low in March, according to Reuters.
As a reminder, oil prices remain above $100 following the resumption of Iraqi shipments.
Additionally, the price of oil could rise to $200 per barrel due to the war between the U.S. and Iran.
