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Diesel tightness and Strait of Hormuz talks keep oil prices supported
Brent held near $90 a barrel before slipping to around $87, as deadlocked US-Iran negotiations and tighter diesel supply raise fears of a supply shock.
Brent crude futures were hovering near recent highs around $90 per barrel before easing to about $87 in early Thursday trading, as market participants weighed stalled progress toward reopening the Strait of Hormuz, OilPrice reported.
According to OilPrice, deadlocked US-Iran negotiations and tightening global fuel supplies have continued to underpin prices and heightened concerns among some energy experts about a potential supply shock, with US-Iran talks remaining unresolved into the end of the week.
OilPrice also noted that the Trump administration is maintaining a blockade of Iranian ports while Tehran is seeking compensation for war-related damage, and that Pakistan, which has served as a mediator, said broader peace talks had stalled.
The outlet added that Brent was on track for a weekly gain of nearly 5%, while attacks on energy infrastructure in Ukraine and Russia are adding pressure, with diesel markets described as particularly tight, and cited an International Energy Agency forecast released on Wednesday for a 1.8 million-barrel supply outlook change.
Latest closeWTI crude $82.68 ▼0.6%|Brent $88.46 ▼0.5%