Oil Futures Rise on U.S.-Iran Peace Deal Proposal
Oil Futures Rise on U.S.-Iran Peace Deal Proposal
Maria Eugenia Garcia
DTN Energy Editor
HOUSTON, TX (DTN) --Crude oil futures settled higher on Thursday (5/7),
reversing an early sell-off driven by expectations of a U.S.-Iran peace deal
and a potential reopening of the Strait of Hormuz.
The front-month ICE Brent rose by $0.81 to $102.08 bbl, and NYMEX WTI for
June delivery edged up by $1.51 to $96.59 bbl.
The NYMEX ULSD futures for June delivery climbed by $0.1177 to $3.9033
gallon, and the front- month NYMEX RBOB futures retreated $0.0482 to $3.5075
gallon.
The US dollar index rose by 0.160 points to 98.035 against a basket of
foreign currencies.
On Thursday, media reports indicated that Iran was reviewing the U.S.
proposal to end the conflict, which has now entered its third month.
According to Reuters, citing sources and officials, the proposal would
unfold in three stages: formally ending the war, resolving the crisis in the
Strait of Hormuz and launching a 30-day window for negotiations on a broader
agreement,
Shipping traffic in the Strait of Hormuz remains restricted, with only seven
vessels crossing the waterway on May 6, according to vessel-tracking data.
Trump is scheduled to meet Chinese President Xi Jinping for a two-day summit
in Beijing next week. China, the main consumer of Iranian oil, has been vocal
in urging restraint from the warring parties and in calling for a reopening of
the Strait of Hormuz.
Declining U.S. inventories reported by the Energy Information Administration
on Wednesday, supported the rise in oil futures hike during today's session.
U.S. commercial crude oil stocks dropped on the week ended May 1 for a
second consecutive week, while distillate fuel inventories plunged to their
lowest level in 20 years, according to EIA data. Gasoline and jet fuel
inventories also edged down.
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