Oil Prices Recover Slightly#
Oil prices saw a slight increase during Asian trading on Thursday after experiencing a significant drop of over 7% the previous day. Investors are currently weighing the potential for a peace deal in the Middle East and analyzing U.S. inventory data that could impact oil supply.
Current Prices#
As of 21:18 ET (01:18 GMT), Brent Oil Futures for July rose by 0.9% to $102.14 per barrel. Meanwhile, West Texas Intermediate (WTI) crude futures increased by 1.3% to $96.24 per barrel. This uptick follows a notable decline on Wednesday, driven by reports suggesting that the U.S. and Iran are nearing an agreement that may ease regional tensions and restore oil flows through the crucial Strait of Hormuz.
Potential US-Iran Agreement#
Reports indicate that the White House is close to finalizing a one-page memorandum of understanding with Iran aimed at ending ongoing conflicts. This development is significant, as the negotiations are described as the closest the two nations have come to an agreement since the conflict began. An Iranian foreign ministry spokesperson mentioned that Tehran would respond to the U.S. proposal within 48 hours.
Impact of U.S. Inventory Data#
Despite the slight recovery in oil prices, gains were limited by the latest weekly inventory data from the Energy Information Administration (EIA). The report revealed that U.S. commercial crude oil inventories, excluding the Strategic Petroleum Reserve, fell by 2.3 million barrels to 457.2 million barrels for the week ending May 1. This decline was less than analysts' expectations of a 3.4 million barrel drop. Additionally, gasoline inventories decreased by 2.5 million barrels, while distillate stockpiles, which include diesel and heating oil, fell by 1.3 million barrels. The report also highlighted strong U.S. petroleum exports, indicating ongoing demand amid disruptions in Middle Eastern energy flows.