Oil prices are falling on global markets: key factors
22 April 11:18
Oil prices are falling on Wednesday, April 22, as investors assess the prospects for peace talks between the U.S. and Iran following Washington’s extension of the ceasefire.
This is reported by "Komersant Ukrainian" citing Reuters.
Brent crude futures fell 0.63% to $97.86 per barrel, while WTI crude futures dropped 0.98% to $88.79 per barrel. U.S. President Donald Trump announced that he is extending the ceasefire in the Middle East indefinitely to give the parties an opportunity to continue peace talks. However, it remains unclear whether Iran or the U.S. ally Israel will agree to this.
“Since the outcome of the negotiations is still unclear and the Strait of Hormuz is closed, the market lacks a clear direction,” said Hiroyuki Kikukawa of Nissan Securities Investment.
“If hostilities do not resume, prices will likely remain at current levels for now,” Kikukawa said.
Trump also noted that the U.S. Navy continues to blockade Iran from the sea, which Tehran views as an act of war.
The Iranian agency Tasnim, affiliated with the Islamic Revolutionary Guard Corps, reported that Iran had not requested an extension of the ceasefire and reiterated Tehran’s threat to break through the U.S. blockade by force.
Shipping in the Strait of Hormuz remained virtually paralyzed on Tuesday: only three vessels passed through the key waterway in the last 24 hours. Oil shipments via the Ukrainian section of the Druzhba pipeline will resume on Wednesday afternoon, according to official sources in Kyiv. According to the API, crude oil inventories in the United States fell by 4.5 million barrels over the week.
