Oil prices stable as Hormuz shipping constraints counter hopes for US-Iran talks
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
LONDON, April 15 : Oil prices were broadly stable after steep falls in the previous session as shipping through the Strait of Hormuz remained constrained, countering expectations of U.S.-Iran talks aimed at ending the war in the Middle East.
Forty-five days after Iran's Revolutionary Guards declared the strait closed, effectively shutting in about 20 per cent of global oil and liquefied natural gas shipments, transit through the waterway remains at only a fraction of the 130-plus daily crossings seen before the war, sources said on Tuesday.
The U.S. has enacted a blockade of shipping leaving Iranian ports that its military said on Wednesday has completely halted trade going in and out of the country by sea.
Brent crude futures were up 49 cents, or 0.5 per cent, at $95.28 a barrel at 1315 GMT, after falling around 5 per cent in the previous session. U.S. West Texas Intermediate crude was up 9 cents, or 0.1 per cent, at $91.37. The contract had dropped 8 per cent the session before.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
"I think you're going to be watching an amazing two days ahead," U.S. President Donald Trump told ABC News reporter Jonathan Karl, according to a post by the reporter on X, adding he did not think it would be necessary to extend a two-week ceasefire that expires next week.
Stock indices rallied on Tuesday on increasing optimism about the prospects for a resolution of the conflict. Trump said talks with Tehran could resume this week after ending over the weekend without any agreement.
Refiners are desperately seeking alternative crude supply, pushing up the premiums they are willing to pay for oil from areas such as the U.S. Gulf Coast and North Sea. A cargo of WTI Midland for delivery to Rotterdam traded at a record premium of $22.80 a barrel above benchmark European prices on Tuesday.
"The Strait of Hormuz is not Trump's alone to reopen," said SEB analyst Ole Hvalbye. "Iran has its own calculus, and the regime may find it strategically useful to keep flows restricted even after any peace deal."
The market stands to lose some access to further supply after two U.S. administration officials told Reuters on Tuesday the U.S. will not renew a 30-day waiver of sanctions on Iranian oil at sea that expires this week, and quietly let a similar sanctions waiver for Russian oil expire over the weekend.
Later in the day, markets will be watching for official U.S. inventory data from the Energy Information Administration, due at 10:30 a.m. ET (1430 GMT).
U.S. crude oil stockpiles were expected to have risen slightly last week, while distillate and gasoline inventories likely fell, a Reuters poll showed. Market sources familiar with American Petroleum Institute figures said on Tuesday U.S. crude oil inventories jumped for a third straight week.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app