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WTI extends losses for third day as Iran-Oman corridor talks progress
WTI was last around $80.10 per barrel in Asian hours, slipping as US Iran pressure was viewed as less severe than expected and sanction worries eased.
West Texas Intermediate crude extended its decline for a third consecutive day, trading around $80.10 per barrel during Asian hours on Wednesday, according to FXStreet.
The move comes after reports that Iran and Oman discussed creating a temporary joint maritime corridor through the Strait of Hormuz, with technical talks continuing toward a possible permanent arrangement covering administration of the strait, traffic management, and maritime and security services.
FXStreet also tied the softer tone to evolving expectations for US foreign policy toward Iran. The outlet said Washington’s latest measures to increase pressure were seen as less aggressive than anticipated because the US did not impose secondary sanctions on Iran’s trading partners.
Still, FXStreet cited TD Securities saying crude flows remain extremely constrained and the product market continues to tighten, leaving a worsening supply backdrop that can support a more constructive stance on Brent even as WTI falls.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%