Oil prices decline 6% amid US signals to end the war with Iran
Oil prices continued to decline today, Wednesday, amid expectations of increased supply from the Middle East, after US President Donald Trump indicated the possibility of reaching an agreement to end the war with Iran.
Brent crude futures fell by 6.70 $, or 6.1%, to reach $103.17 a barrel by 08:56 GMT, after hitting its lowest level in nearly two weeks. US West Texas Intermediate crude also fell by $6.77, or 6.6%, to reach $95.50. Both crude oil prices had fallen by about 4% in the previous session.
Trump announced on Tuesday that he would temporarily stop the process of escorting ships through The Strait of Hormuz, noting progress towards reaching a comprehensive agreement with Iran, but adding that the US Navy would continue its blockade of Iranian ports.
Meanwhile, Iran stated that it would only accept a fair and comprehensive agreement, and Foreign Minister Abbas Araqchi did not directly address Trump’s offer to suspend the escort of US ships.
Market sources, citing American Petroleum Institute figures, said that US oil inventories fell for the third week over Respectively, stocks of gasoline and oil derivatives also declined.
The sources reported that stocks of Crude oil decreased by 8.1 million barrels in the week ending May 1, gasoline inventories decreased by 6.1 million barrels compared to the previous week, and oil derivatives inventories decreased by 4.6 million barrels.
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