US EditionCrude Back Above $110 on Strait Stalemate as US Stocks Retreat
Stalled U.S.-Iran talks and a shut Strait of Hormuz, which carries 20% of global oil, have pushed prices above $110, creating supply uncertainty, analysts said.
- On Tuesday, April 28, Brent crude rose 2.4 per cent to US$110.82 a barrel, while West Texas Intermediate climbed 2.1 per cent, as US-Iran peace efforts appear stalled.
- President Donald Trump remains unhappy with the latest Iranian proposal, leaving the conflict deadlocked while Iran keeps the Strait of Hormuz shut, blocking supply equal to about 20 per cent of global consumption.
- Phillip Nova senior market analyst Priyanka Sachdeva said vessel movement through the Strait remains curtailed, and "that prolonged disruption is what's keeping oil risk premiums elevated." Six Iranian tankers were forced to turn back.
- Suvro Sarkar of DBS Bank expects oil to trade between US$100 and US$125 a barrel, seeing a base case moving to a prolonged ceasefire "limbo situation" with current prices as the new norm.
- Eventually, the conflict will become "normalised" in financial markets, leading to less volatility but a higher baseline, Sarkar said, as physical markets catch up with paper markets.
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39 Articles
The Avery Journal-Times
Crude back above $110 on Strait stalemate as US stocks retreat
Oil prices jumped on Tuesday to their highest level since the US-Iran ceasefire, pressuring US stocks as lack of progress on an accord to reopen the Strait of Hormuz added to inflation worries.
By Hanna Ziady, CNN - Oil prices topped $110 a barrel for the first time in three weeks on Wednesday, fueled by concerns that the United States and Iran were no closer to a deal to end the war and fully reopen the vital Strait of Hormuz. Brent crude, the global benchmark, rose 2.7% to $111.20 a barrel in early trading. West Texas Intermediate (WTI), the U.S. benchmark, was up 2.3% at $98.50 a barrel. President Donald Trump suggested on Monday th…
The stagnant negotiations at the end of the Iran war are taking place on the oil market. Prices have been rising again for a week and a half. Market participants remain only vague hopes - and their patience is dwindling.
Oil prices rose nearly 3 percent today, continuing the previous day's gains, as efforts to end the war between the US and Iran hit an impasse and the key Strait of Hormuz remained largely closed to traffic.
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