Uncertainty in negotiations pushes oil prices back up

In oil markets, recent statements regarding Iran's uranium program and its stance on the Strait of Hormuz have dampened expectations for progress in negotiations with the US, leading to an upward movement in prices. While the price of a barrel of Brent crude exceeded the $104 level again in global markets, the weekly decline remained above 4%. US crude oil, meanwhile, traded just below $98.

Although the Iranian side noted that the latest proposals brought by the US reduced some disputes, the Iranian leader's declarations that the uranium stockpile would be maintained and disagreements over transit fees in the Strait of Hormuz have weakened the possibility of a potential deal.

As uncertainty regarding a consensus persists, the question of when energy shipments through the Strait of Hormuz will fully return to normal remains a focus for investors. Repeated warnings of tension in recent days further increase the uncertainty over whether the parties are close to an agreement.

According to data provided by Goldman Sachs, ongoing conflicts and supply disruptions have caused global crude oil and product inventories to decline rapidly to historic levels. Experts point out that developments in both physical and financial markets are triggering price volatility.

Rebecca Babin, a senior energy trader at CIBC Private Wealth Group, stated, "The constantly changing statements in the headlines are reducing the appetite for risk in both financial and physical markets."

News Source: 12punto