Barrel hits lowest level since March as Iran releases commercial ships and hopes for a new deal with the US
Os oil prices fell more than 10% this Friday (17), expanding previous losses, after Iran’s Foreign Minister said that the passage of all commercial vessels through the remainder of the ceasefire period.
Brent crude futures LCOc1 were down $10.38, or 10.5%, at US$88,95 o barrilaround 11 am (Brasília time), after falling to a session low of US$87.71. U.S. West Texas Intermediate crude futures CLc1 fell $10.50, or 11%, to $84.28 a barrel, after reaching $83.
Both contracts were being negotiated at their lowest level since March 11.
“The Iranian foreign minister’s comments indicate a de-escalation while the ceasefire is in place, now we also need to see if the number of tankers crossing the strait increases substantially,” said UBS analyst Giovanni Staunovo.
Prices had already fallen at the beginning of the session, as possible new negotiations between the US and Iran on the weekend and a ten-day ceasefire between Lebanon and Israel investors’ hopes that the war in the Middle East could be nearing an end have increased.
Addressing a point of friction in the negotiations, US President Donald Trump said Tehran had offered not to possess nuclear weapons for more than 20 years.
“We’ll see what happens. But I think we’re very close to making a deal with Iran,” Trump told reporters outside the White House on Thursday.
A US official told Reuters shortly after the announcement that the strait was open that an Iranian military blockade involving more than 10,000 people remained in place.
While the opening of the strait was a step in the right direction, the European market will remain tight for some time, said analyst Ole Hvalbye of SEB Research, as it takes about 21 days for ships to move from the Persian Gulf to Rotterdam, the region’s main oil port.
*With information from Reuters
