Shafaq News
Oil prices rose 1% on Tuesday, extending gains from theprevious session, as efforts to end the U.S.-Iran war appear stalled, with thecrucial Strait of Hormuz waterway still mainly shut, keeping energy suppliesfrom the key Middle East producing region out of the reach of global buyers.
U.S. President Donald Trump is unhappy with the latestIranian proposal aimed at ending the war, a U.S. official said on Monday. Iranian sources disclosed on Monday that Tehran's proposal avoided addressingits nuclear program until hostilities cease and Gulf shipping disputes areresolved.
Trump's displeasurewith the Iranian offer leaves the conflict deadlocked, with Iran shuttingshipping flows through the Strait of Hormuz, which typically carries supplyequal to about 20% of global oil and gas consumption, and the U.S. keeping inplace its blockade of Iranian ports.
Brent crude futures for June climbed $1.41, or 1.3%, to$109.64 a barrel as of 0400 GMT, after gaining 2.8% in the previous session toits highest close since April 7. The contract is up for a seventh day.
U.S. West Texas Intermediate (WTI) crude for June rose$1.27, or 1.3%, to $97.64 a barrel, after gaining 2.1% in the previous session.
An earlier round of negotiations between the U.S. and Irancollapsed last week following failed face-to-face talks.
"Talks around ‘peace’ still look largely superficialand lack concreteevidence of de-escalation. Despite the rhetoric, vessel movement through theStrait of Hormuz remains curtailed, and that prolonged disruption is what'skeeping oil risk premiums elevated," said Phillip Nova's senior marketanalyst Priyanka Sachdeva.
"In the near term, oil markets are less about macrodemand and more about diplomatic gridlock. Until diplomacy translates intoactual barrel flows, not just statements, oil markets will remain volatile withan upward bias throughMay," she added.
Ship-tracking data revealed significant disruptions in theregion, with six Iranian oil tankers forced to turn back due to the U.S.blockade.
However, a liquefied natural gas tanker managed by theUnited Arab Emirates' Abu Dhabi National Oil Co did cross the Strait of Hormuz andappears to be near India, ship-tracking data showed on Monday.
Prior to the U.S.-Israeli war on Iran, which began onFebruary 28, between 125 and 140 vessels transited the strait daily.
The market is also looking ahead to private and government U.S. inventory data forlater this week.
Analysts polled by Reuters are expecting U.S. crudeinventories to have risen by 300,000 barrels in the last week, with officialdata from the U.S. Energy Information Administration set for release onWednesday.
(Reuters)
Only the headline is edited by Shafaq News staff.