Shafaq News
Oil prices extended their gains on Thursday in the wake ofstalled peace talks between Iran and the United States, and as both nationsmaintained restrictions on the flow of trade through the Strait of Hormuz.
Brent crude futures rose $1.37, or 1.3%, to $103.28 a barrelat 0410 GMT, after settling above $100 for the first time in more than twoweeks on Wednesday. West Texas Intermediate futures were also up $1.52, or1.6%, at $94.48.
Both benchmarks closed more than $3 higher on Wednesdayafter larger-than-expected gasoline and distillate stock draws in the U.S., and over the lack of progresson Iran peace talks.
"The oil market is repricing expectations with littlesign of progress in finding a resolution in the Persian Gulf," said INGanalysts in a note, adding that hopes for a resolution are fading as peacetalks stall.
"In addition, Iran's seizure of two vessels attemptingto transit the Strait of Hormuz suggests disruptions to shipments are set tocontinue."
While U.S. President Donald Trump extended a ceasefirebetween the countries following a request by Pakistani mediators, Iran and theU.S. are still restricting the transit of ships through the strait, whichcarried about 20% of daily global oil supplies until the war began on February28.
Iran seized two ships in the waterway on Wednesday,tightening its grip on the strategic chokepoint. Trump has also maintained aU.S. Navy blockade of Iran's trade by sea,and Iranian parliament speaker and top negotiator Mohammad Baqer Qalibaf said afull ceasefire only made sense if the blockade was lifted.
The U.S. military has intercepted at least threeIranian-flagged tankers in Asian waters and is redirecting them away frompositions near India, Malaysia and Sri Lanka, shipping and security sourcessaid on Wednesday.
With his extension of the ceasefire on Tuesday, Trump againpulled back at the last moment from warningsto bomb Iran's power plants and bridges. Trump has not set an end date for theextended ceasefire, White House press secretary Karoline Leavitt told reporters.
US Exports Set Record High
On energy trade, total exports of crude oil and petroleumproducts from the United States climbed by 137,000 barrels per day to a record 12.88 million bpd asAsian and European countries bought up supplies after disruptions tied to theIran war.
U.S. crude stocks rose while gasoline and distillateinventories fell, the Energy Information Administration said on Wednesday.
Crude inventories rose by1.9 million barrels, compared with expectations in a Reuters poll for a 1.2million-barrel draw.
U.S. gasoline stocks fell by 4.6 million barrels, whileanalysts had expected a 1.5 million-barrel draw. Distillate stockpiles droppedby 3.4 million barrels versus expectations for a 2.5 million-barrel drop.
(Reuters)
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