Oil prices slide about 2% as US, Iran explore path out of war
USO•Oil prices fell about 2% on Friday as hopes grew for a US-Iran truce and talk of a possible US diesel export ban pressured prices. Brent settled at $104.32 a barrel, while WTI settled at $92.41.
1. Prices fall on truce hopes
Brent futures fell $2.28, or 2.1%, to settle at $104.32 a barrel. West Texas Intermediate crude fell $2.20, or 2.3%, to settle at $92.41; Brent was up less than 1% for the week, while WTI was down about 8%.
2. Talks and export concerns
US and Iranian negotiators are exploring a phased path out of the war involving Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said. Iran said it would show no flexibility over its nuclear program, even if the US accepts its proposal to reopen the strait. Talk of a possible US diesel export ban widened the Brent-WTI premium to its highest level since May.
3. Hormuz flows and Saudi Arabia
Crude oil flows through the Strait of Hormuz reached 33.7 million barrels in the week starting September 20, preliminary ship-tracking data showed, roughly in line with the previous week. Saudi, Turkish and Pakistani military chiefs are to discuss support for Saudi Arabia as it faces Houthi attacks.
