SULAIMANI (ESTA) — Crude prices declined in volatile trading on Thursday as investors assessed the potential for new supply in the tight markets amid prospects of a new Iran deal.
Brent futures were down 87 cents at $120.07 a barrel and U.S. West Texas Intermediate futures fell $1.31 to $113.6 per barrel at 0731 GMT.
Both contracts rose $2 and $1, respectively, in early trade.
White House national security adviser Jake Sullivan said on Wednesday the United States and its allies have made progress in Iran nuclear talks but issues remain.
“A lifting of Iranian export restrictions would help alleviate the immense tightness prevalent in crude markets right now,” Reuters quoted consultancy JBC Energy as saying.
Iran is already preparing for a ramp-up in exports, and the state refiner NIOC has reportedly started to reach out to former key customers in India and South Korea, it added.
Both contracts have posted steep gains this week, with Brent futures up more than $14 a barrel since Monday and WTI climbing over $10 a barrel as worries over supply disruptions intensified following Russia’s invasion of Ukraine.
Oil markets jumped more than 5% on Wednesday following reports that crude exports from Kazakhstan’s Caspian Pipeline Consortium (CPC) terminal had completely halted following storm damage. Russia’s deputy prime minister said oil supplies could be stopped for two months.
