On Thursday, April WTI crude oil closed down $0.21 (-0.32%) at a one-week low, while April RBOB gasoline increased by $0.0079 (+0.35%). The fluctuations in crude oil prices were influenced by ongoing negotiations between the US and Iran regarding nuclear talks, with a key mediator from Oman stating that discussions would continue next week after “significant progress” was made in Switzerland.
Crude oil prices saw a rollercoaster effect after reports of productive dialogues emerged, but speculation regarding Iran’s enriched uranium stockpiles remains a significant hurdle. The US has specified that any deal would require Iran to send some of its uranium abroad. Geopolitical tensions are rising, with the US embassy in Lebanon recently evacuating staff in anticipation of regional developments, potentially affecting Iran’s crude oil export capacity of 3.3 million bpd.
Current data indicates that approximately 290 million barrels of Russian and Iranian crude are in floating storage, a 50% increase year-over-year, amidst sanctions and blockades. In contrast, US crude production has slightly decreased, now reported at 13.702 million bpd, while inventory levels show a mixed outlook with crude inventories 2.5% below the seasonal average.
