Oil prices declined on 17 April, influenced by potential further dialogue between the US and Iran scheduled for the weekend and a ten-day ceasefire currently in place between Israel and Lebanon.
By 09:42 GMT, Brent crude futures had dropped by $3.09, reaching $96.30 per barrel (bbl), while US West Texas Intermediate (WTI) crude futures had declined by $4.01 to $90.68/bbl, reported Reuters.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
US President Donald Trump said: “We are going to see what happens, but I think we are very close to making a deal with Iran.”
Trump also said that Tehran had offered not to pursue nuclear weapons for more than 20 years.
Analysts noted that crude benchmarks continue to respond acutely to developments around the conflict.
UBS analyst Giovanni Staunovo said: “Oil prices are reacting very sensitively to escalation or de-escalation headlines.”
Meanwhile, Petroleum Oil Associates analyst Tamas Varga observed that despite prices slipping below $100/bbl, several factors continued to support crude values.
These include the temporary Israel-Lebanon ceasefire, Israel’s ongoing objective to significantly weaken the Iranian regime and the uncertain outlook for quickly reopening oil shipments through the Strait of Hormuz.
Compared to last week, Brent futures were set for a 1.2% weekly gain, despite the fall, whereas WTI futures were on pace for a weekly drop of 6%.
The situation continues to be shaped by a 50% price surge in crude during March, with prices this week consistently above $90.
In another development, US and Iranian representatives have reportedly reduced ambitions for a wide-reaching peace agreement. Instead, the focus is on a temporary memorandum to prevent the resumption of hostilities, according to two Iranian sources cited by Reuters.
The Israeli campaign in Lebanon has persisted as a barrier to the peace deal sought by Trump since the conflict began in late February involving Israel and Iran.
Recently, France and the UK scheduled a meeting with representatives from approximately 40 nations, aiming to signal to the US their readiness to assist in restoring oil flows through the Strait of Hormuz, once conditions allow.
