Oil prices edged lower on Thursday after gaining about 4% in the previous session, as Iran said it remained open to diplomacy to end its war with the US, although both sides remain divided over how to reach a deal.
Brent crude futures fell 94 cents or 0.9% to US$102.13 a barrel, while West Texas Intermediate crude eased 59 cents or 0.7% to US$91.56.
A senior Iranian official told Reuters that Tehran was reviewing Washington’s response to peace proposals, with the reopening of the Strait of Hormuz and lifting of the US naval blockade on Iranian ports among its priorities.
The reopening of the strategic waterway was discussed during indirect talks on Tuesday. However, Iran’s security chief Mohsen Rezaei said earlier on Wednesday that the Strait of Hormuz would not be reopened until Iran’s conditions were met.
US Secretary of State Marco Rubio said a deal with Iran would require hard work over time, while adding that US President Donald Trump also had military options.
Markets were also watching potential restrictions on US diesel exports after Politico reported that the Trump administration was preparing plans for a 90-day diesel export ban. The White House denied the report.
Bloomberg later reported, citing sources, that US Energy Secretary Chris Wright had told oil industry leaders to prepare for possible restrictions on diesel exports during calls late Tuesday.
Wright had said earlier that a diesel export ban would not work, despite Trump saying he would support such a move. Analysts and market watchers have warned that restricting exports could further tighten global fuel supplies and add to energy costs.
Meanwhile, US crude inventories increased by 3 million barrels to 426.4 million barrels last week, according to the Energy Information Administration. Analysts polled by Reuters had expected a 641,000-barrel draw.
Fuel inventories declined during the week.
Reuters
