Oil prices are rising amid a decline in U.S. inventories — Reuters
Global oil prices rose during trading on Thursday, May 21, partially offsetting the sharp drop of the previous day.
This was reported by Reuters.
The main factors driving the market’s recovery were investors’ close attention to the progress of peace talks between the U.S. and Iran, as well as a significant supply shortage due to a record drawdown of U.S. strategic reserves.
Brent crude futures rose by 78 cents, or 0.74%, to $105.80 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose by 84 cents, or 0.85%, to $99.10.
The day before, both oil benchmarks had plummeted by more than 5.6%, hitting a weekly low. This drop was triggered by a statement made by U.S. President Donald Trump.
He noted that negotiations with Iran are in the final stages, but at the same time threatened Tehran with further military attacks if it refuses to sign a peace agreement.
“The oil market remains overly sensitive to news related to Iran, and market participants continue to pin significant hopes on reports of progress in negotiations between the U.S. and Iran,” note experts from the ING financial group.
At the same time, analysts caution that traders “have repeatedly found themselves in situations that ultimately led to disappointment.”
According to their preliminary forecasts, the average price of Brent crude oil will remain at $104 per barrel in the current quarter.
Tehran’s actions are creating additional tension in the global market, as it has officially warned the White House against new attacks and tightened control over the strategic Strait of Hormuz.
Russian oil is on the rise again, shifting the balance of the Russian Federation’s revenues
Oil prices have risen amid expectations of a meeting between Donald Trump and Xi Jinping. Traders are focusing on possible signals regarding a resolution to the conflict with Iran, which has affected global oil supplies.
