Oil falls to $98.26 as Iran negotiations approach resolution

Oil prices fell during trading on Wednesday, after US President Donald Trump told reporters that negotiations with Iran are in their final stages. US crude futures fell by $5.89 at settlement, equivalent to 5.66%, to reach $98.26 per barrel.

The US President threatened to launch more attacks unless Iran agreed to conclude an agreement. He told reporters: “We are in the final stages with Iran. We will see what happens. Either we will make a deal or we will do some slightly bad things, but I hope that does not happen.”

On the other hand, data from the US Energy Information Administration showed that crude oil inventories in the United States declined more than expected last week, according to data released on Wednesday.

The administration stated that crude oil stocks decreased during the week ending May 15 by about 7.9 million barrels, after declining in the previous week by 4.3 million barrels, while analysts had expected a decline of only about 2.9 million barrels.

Thus, the total US stock of crude oil reached 445 million barrels, about 2% less than the average stock over the past five years in the same period of the year.

The data also showed that gasoline stocks declined by about 1.5 million barrels during the past week, becoming about 5% less than its average over the past five years.

On the other hand, the stock of petroleum distillates, which includes heating oil and diesel (diesel), rose by about 400 thousand barrels, remaining about 9% less than its average over the past five years in the same period of the year.