Crude oil marginally appreciated on Wednesday as ongoing worries about supply disruptions offset comments by US President Donald Trump that the war in Iran could be over soon.
Brent futures rose 14 cents or 0.1 per cent to $94.93 a barrel, while the US West Texas Intermediate (WTI) futures gained one cent to settle at $91.29 per barrel.
It was reported that Iran could consider allowing ships to sail freely through the Omani side of the Strait of Hormuz without risk of attack as part of proposals it has offered in negotiations with the United States, providing a deal is clinched to prevent renewed conflict.
Iran’s Revolutionary Guards declared the strait closed more than 40 days ago, effectively shutting in about 20 per cent of global oil and LNG shipments. Transit through the waterway remains at only a fraction of the 130-plus daily crossings before the war.
Also, the US has enacted a blockade of shipping leaving Iranian ports that its military said has completely halted trade going in and out of the country by sea.
US Treasury Secretary Mr Scott Bessent said the US will not be renewing the waivers that allowed the purchase of some Iranian and Russian oil without facing sanctions.
Finance ministers from almost a dozen countries, led by Britain, called on the US, Israel and Iran to implement their ceasefire in full and said the conflict would weigh on the global economy and markets even if it was resolved soon.
Meanwhile, President Trump threatened to fire Jerome Powell from his separate seat on the US central bank’s Board of Governors if the Federal Reserve chair does not vacate that post as well when his term as chairman ends on May 15.
Analysts worry that involving more politics in interest rate decisions could reduce the Federal Reserve’s ability to control inflation. President Trump wants the US central bank to cut rates, which would reduce consumer costs and could boost economic growth and demand for oil.
The International Monetary Fund (IMF) expects at least a dozen countries to seek new loan programmes to cope with surging energy prices and supply chain disruptions caused by the Middle East war.
Japan said it would establish a financial framework worth about $10 billion to help Asian countries procure energy resources and bolster their stockpiles.
Crude oil inventories in the US decreased by 900,000 barrels during the week ending April 10, according to new data from the US Energy Information Administration (EIA) released on Wednesday. This follows figures by the American Petroleum Institute (API) that were released a day earlier, which reported that crude oil inventories saw a build of 6.10 million barrels in the period.
