LONDON, April 23 — Oil prices extended gains today, rising more than US$1 (RM3.96) on stalled peace talks between Iran and the United States and continued restrictions on trade through the Strait of Hormuz.
Brent crude futures rose US$1.47, or 1.4 per cent, to US$103.38 a barrel by 0931 GMT after settling above US$100 for the first time in more than two weeks yesterday. West Texas Intermediate futures were up US$1.40, or 1.5 per cent, at US$94.36.
Both benchmarks closed more than US$3 higher yesterday after larger than expected draws on US stocks of gasoline and distillates, plus the lack of progress on Iran peace talks.
“The market may now be on the verge of a shift from ‘a deal is imminent’ to ‘this may take much longer’. If the expectation of an early May reopening breaks ... then prices will likely reprice higher, both in crude and products,” said SEB analyst Bjarne Schieldrop.
While US President Donald Trump extended a ceasefire between the countries after a request by Pakistani mediators, Iran and the US are still restricting transit of ships through the strait that carried about 20 per cent of daily global oil supplies until the war began on February 28.
Iran seized two ships in the waterway yesterday, tightening its grip on the strategic chokepoint. Trump has also maintained a US Navy blockade of Iran’s trade by sea while Iranian parliament speaker and top negotiator Mohammad Baqer Qalibaf has said a full ceasefire only made sense if the blockade is lifted.
The US military has intercepted at least three Iranian-flagged tankers in Asian waters and is redirecting them away from positions near India, Malaysia and Sri Lanka, shipping and security sources said yesterday.
Trump has not set an end date for the extended ceasefire, White House press secretary Karoline Leavitt told reporters.
US exports set record high
On energy trade, total exports of crude oil and petroleum products from the US climbed by 137,000 barrels per day (bpd) to a record 12.88 million bpd as Asian and European countries bought supplies after disruptions from the Iran war.
US crude stocks rose while gasoline and distillate inventories fell, the Energy Information Administration said yesterday.
Crude inventories rose by 1.9 million barrels, compared with expectations for a draw of 1.2 million barrels in a Reuters poll of analysts.
US gasoline stocks fell by 4.6 million barrels against analyst expectations of 1.5 million barrels. Distillate stockpiles dropped by 3.4 million barrels versus expectations of 2.5 million barrels.
