Oil prices rose more than 1% on Thursday, May 21, partially recouping earlier losses as investors watched peace talks between the United States and Iran, while tight supply and a drawdown in U.S. inventories provided some support to the market.
This is reported by Economic Pravda with reference to Reuters.
Brent futures rose USD 1.27, or 1.21%, to USD 106.29 a barrel, the report said. U.S. West Texas Intermediate futures rose USD 1.29, or 1.31%, to USD 99.55.
Both benchmarks fell more than 5.6% on Wednesday to their lowest in more than a week after President Donald Trump said talks with Iran were in the final stages, but also threatened more attacks if Tehran did not agree to a peace deal.
"The oil market remains overly sensitive to Iran-related headlines, with participants continuing to place significant expectations on reports of progress in U.S.-Iran talks," ING analysts said in a note on Thursday.
"We've been in this situation many times before, and it ended in disappointment," they added, forecasting an average Brent price of USD 104 per barrel in the current quarter.
It is noted that Iran warned of new attacks and presented steps to consolidate its control over the critically important Strait of Hormuz, which is mostly closed, although before the war, about 20% of world oil and liquefied natural gas supplies passed through it.
As Ukrainian News Agency earlier reported, on Wednesday, May 20, oil prices fell amid Trump's statement about the "soon end" of the war in Iran.
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