Oil prices extend gains on Thursday

Oil prices extended gains on Thursday after rising 4 per cent in the previous session as US-Iran diplomatic talks showed no concrete signs of progress. Brent crude futures rose 0.4 per cent to $103.51 a barrel by 0630 GMT, while West Texas Intermediate futures gained 0.4 per cent to $92.51.

Iran and the US remain divided over efforts to end their war, with Tehran reviewing Washington’s response to its proposals, which include lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz.

Iran’s security chief Mohsen Rezaei said the strait would not reopen until Iran’s conditions are met, while US Secretary of State Marco Rubio said reaching a deal would require sustained negotiations.

Traders were also assessing possible US restrictions on diesel exports. Diesel futures fell about 5 per cent after a report that the Trump administration was considering a 90-day export ban, although the White House denied the report.

US Energy Information Administration data showed US distillate stockpiles fell by 428,000 barrels to 107.4 million barrels last week, while crude inventories rose by 3 million barrels to 426.4 million barrels.

Attribution: Reuters