Oil eased as US and Iranian negotiators explored a phased deal to reopen the world’s most important energy shipping route.
West Texas Intermediate futures traded below $94 a barrel, retreating slightly from a surge fuelled by supply concerns and hawkish rhetoric.
The two countries were said to be pushing for a breakthrough that would see Tehran reopen the Strait of Hormuz and Washington lift its blockade of Iranian ports.
Still, the warring sides have appeared close to a deal many times before, only for talks to collapse.
Signs of tightness remain across markets for real-world barrels, and many traders were hesitant to shift their positions until they see a meaningful increase in supplies.
Uncertainty looms A White House official said that President Donald Trump remained open to talking with Iran but stressed the US didn’t need to negotiate because it was in a strong position as a result of its sanctions campaign and the blockade.
“A similar deal has been announced so many times before, and we have seen little traction on it,” said Emily Ashford, head of energy research at Standard Chartered Bank.
“Plus, even if we saw some diplomatic breakthrough, that doesn’t immediately restore disrupted flows, doesn’t normalize shipping, or boost dwindling inventories, or improve confidence.” All week, crude prices have been buffeted by mixed signals on the outlook for peace, indications of a pick-up in Middle East flows and speculation that the US may ban diesel exports.
For the year, Brent remains more than 70 per cent higher, adding to inflationary pressures.
While front-month futures retreated on Friday,....
