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What is the story about?
Oil prices extended their declines as more tankers crossed the Strait of Hormuz, while the Iran deal was likely progressing towards ending the war.
Brent crude was below %77 a barrel after declining 1.1% in the prior session. Meanwhile, West Texas Intermediate was close to $73 a barrel.
Vessels are transiting the waterway with their satellite signals switched on, indicating growing confidence among shipowners. The International Maritime Organization also said it had received safety guarantees allowing hundreds of ships to exit the Persian Gulf.
Washington and Tehran have both flagged early progress in talks to end the war that began in late February, although negotiations are likely to be protracted and claims from the two sides have diverged. Iran and Oman said they are beginning work on a pact for the administration of Hormuz, including transit costs, with lingering concerns the Islamic Republic could levy fees.
The Republican-led Senate voted Tuesday to end the US war with Iran in a rare symbolic rebuke of President Donald Trump. While the resolution is unlikely to force any changes in the administration’s strategy, it represents the latest sign that the president lacks domestic support for the effort.
Oil futures have retreated by more than a third from their wartime highs, driven in part by expectations of an impending increase in crude supply. The US has temporarily allowed purchases of Iranian oil as part of the diplomatic process, aiding efforts by sellers to court Asia’s largest refiners.
Persian Gulf producers, including the United Arab Emirates, are moving to quickly restore exports. The UAE has recovered to almost 85% of pre-war output levels, according to the International Energy Agency, highlighting the region’s ability to ramp supply back up. Kuwait has rolled back its force majeure declarations, while Iraq is also boosting production.
Still, there are signs of tightness in some markets, including the US. The American Petroleum Institute reported crude inventories at the key storage hub of Cushing, Oklahoma, fell by another 1 million barrels last week, according to a document seen by Bloomberg. If confirmed by official data later Wednesday, that would mean stockpiles have dropped below the 20-million-barrel mark that’s widely seen as the minimum operating level.
With inputs from Bloomberg
Brent crude was below %77 a barrel after declining 1.1% in the prior session. Meanwhile, West Texas Intermediate was close to $73 a barrel.
Vessels are transiting the waterway with their satellite signals switched on, indicating growing confidence among shipowners. The International Maritime Organization also said it had received safety guarantees allowing hundreds of ships to exit the Persian Gulf.
Washington and Tehran have both flagged early progress in talks to end the war that began in late February, although negotiations are likely to be protracted and claims from the two sides have diverged. Iran and Oman said they are beginning work on a pact for the administration of Hormuz, including transit costs, with lingering concerns the Islamic Republic could levy fees.
The Republican-led Senate voted Tuesday to end the US war with Iran in a rare symbolic rebuke of President Donald Trump. While the resolution is unlikely to force any changes in the administration’s strategy, it represents the latest sign that the president lacks domestic support for the effort.
Oil futures have retreated by more than a third from their wartime highs, driven in part by expectations of an impending increase in crude supply. The US has temporarily allowed purchases of Iranian oil as part of the diplomatic process, aiding efforts by sellers to court Asia’s largest refiners.
Persian Gulf producers, including the United Arab Emirates, are moving to quickly restore exports. The UAE has recovered to almost 85% of pre-war output levels, according to the International Energy Agency, highlighting the region’s ability to ramp supply back up. Kuwait has rolled back its force majeure declarations, while Iraq is also boosting production.
Still, there are signs of tightness in some markets, including the US. The American Petroleum Institute reported crude inventories at the key storage hub of Cushing, Oklahoma, fell by another 1 million barrels last week, according to a document seen by Bloomberg. If confirmed by official data later Wednesday, that would mean stockpiles have dropped below the 20-million-barrel mark that’s widely seen as the minimum operating level.
With inputs from Bloomberg
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