The light sweet crude oil market initially fell on Wednesday as US and Iranian officials are starting o communicate. However, we are still very much in the same range overall.
Hungary will gradually stop sending natural gas to Ukraine until crude oil flows on the Druzhba pipeline resume, Prime Minister Viktor Orban said on Wednesday, escalating a standoff with Kyiv over energy supplies disrupted by the war.
Oil prices are lower this morning; Brent Crude dipped back under the widely watched US$100/barrel mark and is down 3.6% to reach US$96 as of writing.
Global stocks jumped as tentative hopes for a diplomatic resolution to end the conflict in the Middle East grew.
Brent crude traded 5% lower on reports of U.S. ceasefire proposal.
Turkey's dependence on Middle East oil is at a minimum and "manageable" level of 10% of overall supplies and there are no supply problems at the moment despite the Iran war, Energy Minister Alparslan Bayraktar said on Wednesday.
Crude oil futures slip on Iran deal headlines, but ongoing regional instability and supply risks keep the long-term oil outlook bullish.
Oil retreated while Asian equity markets rose early Wednesday amid improving risk sentiment on hopes of a resolution to the Middle East conflict.
Unless peace talks pan out fast, traders say high prices for specific Mideast crude cargoes will soon cascade to the U.S. and elsewhere.
Oil fell in early trade on signs of progress in a resolution to the Middle East conflict.
Iran appears to have adopted a “calibrated strategy” in the Strait of Hormuz — allowing only certain vessels to pass through the crucial waterway.
News of a U.S. troop deployment pulled stocks lower, even after President Trump signaled peace talks with Iran were progressing.