Oil prices slip as Iran signals openness to diplomacy
Crude prices fell as Iran said it remains open to diplomacy, while US crude inventories rose by 3 million barrels.
Oil prices moved lower on Thursday, giving back part of the previous session's 4% gain, after Iran indicated it was still open to diplomacy to end its war with the United States even as the two sides remain far apart on how to do so.
Brent crude futures slipped 94 cents, or 0.9%, to $102.13 a barrel, while West Texas Intermediate eased 59 cents, or 0.7%, to $91.56.
A senior Iranian official said Tehran was reviewing Washington's response to its peace proposals, which give priority to lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz. Both issues were discussed during indirect talks on Tuesday, the official said. The comments followed a speech by Iran's president to the UN General Assembly in which he said Tehran would never surrender to US pressure.
Iran's security chief, Mohsen Rezaei, said earlier on Wednesday that the Strait of Hormuz would not be reopened while Iran's conditions remain unmet. US Secretary of State Marco Rubio told reporters that any deal with Iran would require hard work over time, and noted that military options remained available to President Donald Trump.
Traders were also assessing the prospect of restrictions on diesel exports. Ultra-low-sulfur diesel futures fell about 5% in midday trading after a report that the Trump administration was preparing a 90-day diesel ban, which the White House denied. A later report said Energy Secretary Chris Wright had told oil industry leaders to prepare for possible US curbs on diesel exports during calls late Tuesday. Wright had said earlier on Wednesday that an export ban would not work, even though Trump had expressed support for one. Analysts have warned that such a step would do little to ease high energy prices and could tighten global supplies and further disrupt economies.
Separately, the Energy Information Administration said US crude inventories rose by 3 million barrels to 426.4 million barrels last week, against analyst expectations of a 641,000-barrel draw. Fuel stocks declined.