(May 22): Oil rose on Friday after three days of declines, as statements by Iran on uranium and the Strait of Hormuz pared earlier optimism over progress in the negotiations with the US.
Brent climbed above US$104 ($133) a barrel, but is still down more than 4% this week. West Texas Intermediate (WTI) was near US$98. Iran said the latest proposal from the US partly bridged the gap between the warring sides, but comments from the Islamic Republic’s Supreme Leader about keeping Tehran’s uranium stockpile and a dispute over tolls in the Strait of Hormuz clouded the outlook for a breakthrough.
The conflicting statements on key issues left it unclear if the two sides were any closer to a deal after renewed threats of escalation in recent days, buffeting oil prices as traders try to gauge when energy flows through the strait will fully resume. The war and the curtailment in supplies has seen global stockpiles of crude oil and products being drawn down at a record pace, according to Goldman Sachs Group Inc.
“The constant back-and-forth in headlines is clearly reducing risk-taking across both paper and physical markets,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. “Dip buyers remain reluctant to step in front of potential returning flows through the strait, while physical players continue to de-stock and wait rather than chase expensive cargoes.”
The International Energy Agency remains ready to free further stockpiles if needed, after a first release in March, executive director Fatih Birol said on Thursday.
Prices:
See also: Oil near US$100 seen as base case over next 12 months on Iran war
- Brent for July was 1.8% higher at US$104.46 a barrel at 10.22am in Singapore on Friday
- WTI for July delivery rose 1.4% to US$97.72 a barrel
Uploaded by Tham Yek Lee
