Wednesday, 06 August 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Oil prices settled down 2% on expectations for US-Iran nuclear deal
Friday, 16 May 2025 04:12 WIB | OIL |brent oil

Oil prices settled lower on Thursday on expectations for a U.S.-Iran nuclear deal that could result in sanctions being eased and more barrels released onto the global market.

Brent crude futures settled down $1.56, or 2.36%, to $64.53 a barrel. U.S. West Texas Intermediate crude futures settled down $1.53, or 2.42%, to $61.62.

U.S. President Donald Trump said on Thursday that the U.S. was getting close to securing a nuclear deal with Iran, and Tehran had "sort of" agreed to the terms.

An Iranian official told NBC News in an interview published on Wednesday that Iran was willing to agree to a deal with the U.S. in exchange for lifting economic sanctions.

"(Any) immediate sanctions relief stemming from a nuclear agreement could unlock an additional 0.8 million barrels per day of Iranian crude for the global market – an undeniably bearish development for prices," SEB analyst Ole Hvalbye said.

Washington issued sanctions on Wednesday to target Iranian efforts to domestically manufacture components for ballistic missiles, the U.S. Treasury Department said, following Tuesday's sanctions on some 20 companies in a network that it said has long sent Iranian oil to China.

The sanctions followed a fourth round of U.S.-Iran talks in Oman aimed at addressing disputes over Iran's nuclear programme.

"We are swinging between President Trump zeroing out Iran to bringing them into the community of nations, so the threat to supply is in both directions, with either some Iranian barrels continually snuck onto the market or we get the full benefit of Iranian production, that is what is swinging the price," said John Kilduff, partner at Again Capital in New York.

Elsewhere, Russia's Vladimir Putin spurned a challenge to meet face-to-face with Ukrainian President Volodymyr Zelenskiy in Turkey on Thursday, dealing a blow to prospects for a peace breakthrough.

Zelenskiy said Putin's decision to send what he called a "decorative" lineup showed the Russian leader was not serious about ending the war.

"I think that is supportive because part of the bear case for prices is that if this Ukraine-Russia situation resolves itself then we can get that Russian supply onto the global market," Kilduff said.

Meanwhile, the International Energy Agency lifted its oil demand growth forecast in 2025 to 740,000 barrels per day, up 20,000 bpd from the previous report, citing higher economic growth forecasts and lower oil prices supporting consumption.

The IEA said economic headwinds and record sales of electric vehicles are expected to reduce demand growth to 650,000 bpd for the remainder of the year, from growth of nearly 1 million bpd in the first quarter.

The Organization of the Petroleum Exporting Countries and allied producers, known as OPEC+, has been increasing supply, although OPEC on Wednesday trimmed its forecast for growth in oil supply from the U.S. and other producers outside the wider OPEC+ group this year.

Weighing on prices, data from the U.S. Energy Information Administration on Wednesday showed crude stockpiles rose by 3.5 million barrels to 441.8 million barrels last week, compared with analysts' expectations in a Reuters poll for a 1.1 million-barrel draw. [EIA/S]

Black Sea CPC Blend crude oil exports are pencilled in at 1.6 million to 1.7 million bpd in June, several trading sources with knowledge of the month's loadings told Reuters.

At that level, loadings will be higher than the approximately 1.5 million bpd scheduled for export in May.

Source: Investing.com

RELATED NEWS
Oil prices continue to fall following OPEC+ output raise...
Tuesday, 5 August 2025 19:53 WIB

Oil prices slipped lower Tuesday, continuing recent losses as traders fretted over increased production and deteriorating demand amid increased global economic headwinds. At 08:05 ET (12:05 GMT), Bre...

Oil steadies as OPEC+ output hikes counter Russia disruption concerns...
Tuesday, 5 August 2025 16:42 WIB

Oil was little changed on Tuesday as traders assessed rising OPEC+ supply and worries of weaker global demand, against U.S. President Donald Trump's threats to India over its Russian oil purchases. T...

Oil Prices Weakened On Rising Supply And Demand Concerns ...
Tuesday, 5 August 2025 12:35 WIB

Oil prices weakened on Tuesday (August 5th) on concerns about oversupply as OPEC+ continued significant production increases despite a weak demand outlook. This increase was more than enough to offset...

WTI Recorded A Slight Decline Near $65.50 Amid Oversupply Concerns And Russian Uncertainty ...
Tuesday, 5 August 2025 07:34 WIB

West Texas Intermediate (WTI), the US crude oil benchmark, traded around $65.65 at the start of the Asian trading session on Tuesday (August 5). WTI traded slightly lower after the Organization of the...

Oil falls as OPEC+ output hike adds to oversupply concerns...
Tuesday, 5 August 2025 01:54 WIB

Oil prices fell to their lowest in a week on Monday after OPEC+ agreed to another large output increase in September, adding to oversupply concerns after U.S. data showed lacklustre fuel demand in the...

LATEST NEWS
Wall Street Falls as Economic and Trade Worries Mount

US equities ended lower on Tuesday as investors grappled with downbeat economic data, rising trade tensions, and mixed corporate earnings. The S&P 500 dropped 0.5%, the Nasdaq slid 0.7%, and the Dow slipped by 62 points, following Monday's...

Australian Dollar rebounds as weak US ISM PMI weighs on the US Dollar

The Australian Dollar (AUD) edges modestly higher against the US Dollar (USD) on Tuesday, paring early losses as the Greenback comes under renewed pressure amid fresh signs of a slowing US economy. The AUD/USD pair drifted lower for most of...

Trump signals tariff plans, Fed chair candidates, China deal progress

President Donald Trump announced Tuesday that Scott Bessent has declined consideration for Federal Reserve Chair while praising "both Kevins" - Kevin Warsh and Kevin Hassett - as "very good" candidates for the position. Speaking on CNBC, Trump...

POPULAR NEWS
European Stocks Rise After Selloff
Monday, 4 August 2025 14:40 WIB

European stock markets opened positively this week, with the Euro Stoxx 50 up 0.6% and the broader Stoxx 600 up 0.2%. This rebound follows a sharp...

White House Defends Firing Of Labor Official As Critics Warn Of Eroding Trust
Monday, 4 August 2025 11:56 WIB

White House economic advisers on Sunday defended President Donald Trump's firing of the head of the Bureau of Labor Statistics, dismissing criticism...

EU to suspend US tariff countermeasures for 6 months
Monday, 4 August 2025 21:39 WIB

The European Union will suspend its two packages of countermeasures to U.S. tariffs for six months following a deal with U.S. President Donald...

Swiss tensions run high as clock ticks on U.S. tariff deadline
Monday, 4 August 2025 18:39 WIB

Tensions and fears are running high in Switzerland, as the deadline to strike a trade agreement with the U.S. looms just days away. Without a deal,...