24.09.202617:05:15UTC+00Crude Oil Trims Gains on US-Iran Deal Hopes

Crude oil hovered near $94 per barrel on Thursday, pulling back from a rally that briefly pushed prices to $97, amid indications that the United States and Iran may be moving toward a framework to restore exports from the Persian Gulf. Media reports indicated that negotiators from both countries were discussing a potential agreement that would lift naval restrictions on tankers traversing the Strait of Hormuz and relax US sanctions on the Iranian economy.

Earlier this month, attacks on commercial vessels had sharply curtailed oil shipments from GCC producers, bringing exports close to a standstill. The disruption was exacerbated by strikes on Saudi Arabia’s East–West pipeline, which had been rerouting about 7 million barrels per day of crude to Red Sea terminals. The prolonged suspension of tanker flows from the region forced key OPEC members to scale back output, with Saudi production recently falling to its lowest level since 1990.

At the same time, lower crude inventories in China threaten to dampen buying from the world’s largest importer, while the US Strategic Petroleum Reserve (SPR) remains near historically low levels.