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Crude eases as Iran-Oman Strait of Hormuz talks offset supply fears
Brent slipped below $90 and WTI fell below $83 after investors weighed ongoing Strait of Hormuz talks alongside renewed US strikes on Iran.
Crude oil prices eased in Thursday trading after investors balanced reports of continued Iran-Oman discussions over reopening the Strait of Hormuz against fresh US strikes on Iran, LiveMint Markets reported. Brent crude moved below $90 a barrel, giving back part of its prior-session rally of 7.9%, while US benchmark WTI slipped below $83 after its previous gain of 6.5%, according to the report. The decline followed Reuters reporting, citing the Iranian Labour News Agency, that talks between Iran and Oman are ongoing. Iran’s Deputy Foreign Minister Saeed Gharibabadi said Tehran proposed a joint arrangement in which Iran would manage shipping traffic in one direction through the strait and Oman would oversee transit in the opposite direction, after Iran rejected an earlier Omani 50-50 management plan that would have left Tehran without full control of the inbound lane. The story also noted that attention remains focused on the Strait of Hormuz, which carries nearly 20% of the world’s seaborne oil trade, and it highlighted additional shipping disruptions. Reuters, cited by LiveMint, said the Houthi group is reportedly considering imposing transit fees on commercial vessels through the southern Red Sea, and separate reporting said tankers scheduled to load at the Caspian Pipeline Consortium terminal are moving away from the Black Sea after a vessel was hit during loading on Thursday.
Latest closeWTI crude $84.41 ▲6.5%|Brent $90.40 ▲7.5%