Oil prices ease on Wednesday

Oil prices eased on Wednesday as markets weighed uncertainty over US–Iran ceasefire talks, despite an extension announced by Donald Trump. Brent crude fell 0.3 per cent to $98.16 per barrel, while West Texas Intermediate dropped 0.6 per cent to $89.14, after both benchmarks gained about 3 per cent in the previous session.

Trump said the ceasefire with Iran would be extended indefinitely to allow negotiations to continue, though it remained unclear whether Iran or Israel would agree to the move. He added that the US Navy would maintain its blockade of Iranian ports, a step Tehran considers an act of war.

Uncertainty persisted as Iran signalled it had not requested the extension and could respond to the blockade by force. Meanwhile, traffic through the Strait of Hormuz, a key route for roughly 20 per cent of global oil and liquefied natural gas supplies, remained largely disrupted.

Elsewhere, supply signals were mixed as Ukraine indicated readiness to resume flows via the Druzhba pipeline, while sources suggested Russia may halt shipments from Kazakhstan to Germany starting in May.

In the US, expectations of tightening supply supported prices, with crude inventories estimated to have fallen by 1.2 million barrels last week, alongside declines in fuel stocks, ahead of official data from the Energy Information Administration.

Attribution: Reuters