Key facts
- Oil prices declined on Thursday, following a 4% rise in the previous session.
- Iran stated it is open to diplomacy to resolve its conflict with the US, though significant disagreements persist.
- US Secretary of State Marco Rubio indicated that a deal with Iran would require extensive work and that military options remain.
- Reports suggested the Trump administration was preparing plans for a 90-day diesel ban, which the White House denied.
- US crude inventories rose by 3 million barrels to 426.4 million barrels last week, contrary to analysts' expectations of a draw.
Oil prices edged lower on Thursday, extending losses after climbing 4% in the previous session, as Iran indicated it remained open to diplomacy to end its conflict with the United States, despite significant remaining divisions. Brent crude futures fell 0.9% to $102.13 a barrel, while West Texas Intermediate futures eased 0.7% to $91.56.
A senior Iranian official told Reuters on Wednesday that diplomacy must continue, even as Iran reviews Washington's response to its peace proposals, which prioritize lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz. Earlier on Wednesday, Iran's security chief Mohsen Rezaei stated the Strait of Hormuz would not be reopened until Iran's conditions were met.
US Secretary of State Marco Rubio told reporters on Wednesday that a deal with Iran would involve hard work over a period of time, adding that Trump also had military options. Traders also evaluated possible curbs on diesel exports, with reports suggesting the Trump administration was preparing plans for a 90-day diesel ban, though the White House denied this. However, Energy Secretary Chris Wright told oil industry leaders to brace for possible US curbs on diesel exports.
Meanwhile, US crude inventories rose by 3 million barrels to 426.4 million barrels last week, the Energy Information Administration said. Analysts polled by Reuters had expected a 641,000-barrel draw.