Oil extends gains on little sign of progress in US-Iran talks
USO•Oil prices rose more than 2% as US-Iran talks showed little sign of progress and uncertainty persisted over a potential US diesel export ban. Brent was up 2.36% at $105.51 a barrel and WTI rose 1.89% to $93.90.
1. Prices rise
Brent crude futures were up $2.43, or 2.36%, to $105.51 a barrel, while West Texas Intermediate futures rose $1.74, or 1.89%, to $93.90. Brent earlier reached $106.50 after reports suggested Iran gave the US one week to meet its demands, including lifting the US naval blockade.
2. Talks and exports
A senior Iranian official said Tehran was reviewing Washington’s response to its peace proposals, which prioritize lifting the US naval blockade on Iranian ports and reopening the Strait of Hormuz. A White House official denied a report that the US was preparing a 90-day ban on diesel exports.
3. US inventory data
US distillate stockpiles fell 428,000 barrels to 107.4 million barrels last week. Crude inventories rose 3 million barrels to 426.4 million barrels, compared with analysts’ expectations for a 641,000-barrel draw.
