Shafaq News

Oil prices were largely flat on Wednesday after rising about$1 at the start of Asian trading, with investors assessing the outlook forU.S.-Iran peace talks following the U.S. extension of a ceasefire.

Brent crude futures were up 3 cents, or 0.02%, at $98.51 abarrel at 0438 GMT, after touching $99.38 per barrel earlier in the session. West Texas Intermediate futures were down 13 cents, or 0.14%, to $89.53 afterclimbing as high as $90.71 at the open.

Both benchmark contracts rose about 3% on Tuesday.

U.S. President Donald Trump said he would indefinitelyextend the ceasefire with Iran, hours before its expiry, to allow talks to ⁠continue to end a war that haskilled thousands and shaken the global economy.

The move appeared unilateral, and it was not immediatelyclear whether Iran, or U.S. ally Israel, would agree to extend the truce, whichbegan two weeks ago.

"With the outcome of talks still unclear and the Straitof Hormuz closed, the market lacks clear direction," said HiroyukiKikukawa, chief strategist of Nissan Securities Investment, a unit of NissanSecurities.

"Unless fighting resumes, prices are likely to staynear the current levels for now," Kikukawa said.

Trump also said the U.S. Navy would maintain its blockade ofIran's ports and shore, which Iranian leaders have called an act of war.

There was no immediate comment from Iran's most seniorleaders on Trump's ceasefire extension. Tasnim News ⁠Agency, affiliated with Iran's RevolutionaryGuards, said Iran had not asked for the extension and repeated its position ofbreaking the U.S. blockade by force.

Shipping traffic through the Strait of Hormuz, whichnormally channels about 20% of global oil and liquefied natural gas supplies,remained broadly halted on Tuesday with only three ships passing along thewaterway in the past 24 hours, shipping data showed.

Elsewhere, the Israeli military said ⁠Hezbollah fired rockets at its troops in southernLebanon, accusing the Iran-backed group of violating a ceasefire ahead ofU.S.-mediated talks with Lebanon this week. There was no immediate comment fromHezbollah.

In Europe, Ukrainian President Volodymyr Zelenskiy said theDruzhba oil pipeline pumping Russian oil onto ⁠thecontinent is ready to resume operation. Three industry sources, however, saidRussia is set to stop oil exports from Kazakhstan to Germany via the Druzhbapipeline starting on May 1.

Later on Wednesday, the U.S. Energy InformationAdministration will publish ⁠inventorydata.

U.S. crude oil inventory fell by 4.5 million barrels lastweek after three weeks of gain, while gasoline and distillate stock alsodeclined, market sources said, citing American Petroleum Institute figures onTuesday.

Analysts estimated a 1.2 million-barrel draw of crude forthe week ended April 17.

(Reuters)

Only the headline is edited by Shafaq News Agency.