Oil Steady, Market Awaits Signals on US-Iran Talks and EIA Data
Oil prices moved slightly on Wednesday (April 15) as the market assessed the chances of renewed US-Iran talks and the potential release of Middle East supply, amidst continued export pressure due to the remaining blockage in the Strait of Hormuz. Brent rose 0.5% to US$95.22/barrel at 08:21 GMT after falling 4.6% the previous day, while WTI fell 0.2% to US$91.11/barrel after plunging 7.9% in the previous session.
The war has kept flows through Hormuz—a key route for crude and refined products from the Gulf to global buyers, particularly Asia and Europe—well below normal levels. US President Donald Trump said talks with Tehran could resume this week, although weekend negotiations ended without an agreement. However, the US has also imposed a blockade on shipping out of Iranian ports; the US military said the move has halted maritime trade in and out of Iran.
In the physical market, tight supplies are forcing refiners to seek alternatives, pushing premiums for oil from other regions sharply higher. Reuters reported that WTI Midland cargoes for delivery to Rotterdam were trading at a record premium of US$22.80/barrel over the European benchmark on Tuesday. A US official also said a US destroyer stopped two tankers from leaving Iran on Tuesday.
Additional supply risks emerged after US administration officials said they would not extend a 30-day sanctions waiver on Iranian oil “at sea” that expires this week, and allowed a similar waiver for Russian oil to expire quietly over the weekend. The market believes these steps could tighten legal supplies, while Hormuz flows remain uncertain.
The next focus is official EIA inventory data, scheduled for release at 10:30 a.m. ET (14:30 GMT). A Reuters poll consensus expects US crude stocks to rise slightly, while distillate and gasoline inventories fell. Market sources, citing API data, said US crude stocks rose for a third straight week—a catalyst that could change price direction if confirmed or denied by the EIA. (Arl)*
Source: Newsmaker.id
