Oil Prices Drop, Market Gauges Chances of Negotiations to End Iran War
Oil prices weakened in early trading on Friday (April 17th), amid growing optimism that the Middle East conflict could ease after a 10-day ceasefire between Lebanon and Israel took effect. This was also boosted by signs of a US-Iran meeting for talks over the weekend.
Brent crude fell 61 cents, or 0.61%, to US$98.78 per barrel at 07:07 GMT, while WTI fell 89 cents, or 0.94%, to US$93.80 per barrel. This decline pared some of the previous session's gains.
Sentiment improved after US President Donald Trump stated that Washington and Tehran "may" meet for talks and considered the chances of a deal "very close." Trump also said Iran had offered a commitment to not possess nuclear weapons for more than 20 years.
The market remains sensitive as the Iran war has closed the Strait of Hormuz for seven weeks, blocking about a fifth of global oil supply. According to ING analysts' estimates, the shutdown has disrupted the flow of approximately 13 million barrels per day.
Although prices spiked significantly in March and only recently fell back below US$100 per barrel, oil has remained around US$90 throughout this week. On the diplomatic front, Iranian sources said US and Iranian negotiators have now lowered their target from a comprehensive peace agreement to an interim memorandum to prevent a re-emergence of conflict. (asd)
Source: Newsmaker.id
