Oil prices settled mixed on Thursday after a volatile trading session as traders weighed conflicting reports about a potential US-Iran ceasefire deal.
Brent crude futures for July closed down 58 cents at $93.71 a barrel, while August futures rose by 72 cents to $92.97. U.S. oil futures saw a slight increase, settling up 22 cents at $88.90 a barrel.
The market remains sensitive to Middle East developments, with an agreement reportedly reached to extend the ceasefire for 60 days, pending U.S. President Donald Trump's approval. However, Iran's Tasnim news agency reported that the memorandum of understanding has not been finalized.
“The complex continues to advance grudgingly on bullish developments out of Iran while plunging markedly on even the slightest suggestion of a reopening of the Strait of Hormuz.”
Ritterbusch and Associates
Earlier, Brent and WTI futures rose over 2% following Iran's Revolutionary Guards' response to a U.S. attack.
Oil prices were also influenced by U.S. data showing a 3.3 million barrel decline in crude stockpiles, marking a sixth consecutive week of decreases but falling short of the expected 4.1 million barrel draw.
Background
The oil market's sensitivity to geopolitical developments highlights the ongoing volatility and uncertainty affecting global energy prices.
Traders and analysts will closely monitor further developments in the US-Iran ceasefire negotiations and their potential impact on oil prices.
