WTI Near $90 as Trump Threatens End to Iran Ceasefire


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Oil markets resumed their climb Monday (4/20), 
following week's tumble over news of the Strait of Hormuz's reopening, as 
Tehran announced it had closed again the main waterway for Middle East oil 
shipments.

   U.S. President Donald Trump added to the geopolitical premium in oil by 
warning that the U.S.-Israel ceasefire on Iran will not be extended beyond 
Wednesday (4/22).

   NYMEX WTI crude for May delivery settled up $5.76, or nearly 7%, at $89.61 
bbl, after reaching an intraday high of $91.20. May WTI tumbled almost 12% on 
Friday (4/17).

   The ICE Brent crude contract for June closed up $5.10, or around 6%, at 
$95.48 bbl, following a session peak at $97.50. June Brent lost about 5% in the 
prior session.

   Among refined products, diesel proxy ULSD settled Monday's trading for the 
May contract on NYMEX up $0.1435 at $ 3.5409 gallon. In gasoline, NYMEX RBOB 
futures for May ended up $0.112 at $ 3.1168 gallon.

   The US dollar index gained 0.112 points against a basket of foreign 
currencies to 98.01 points by 2:41 p.m. ET

   Oil prices rebounded as U.S. Vice President J.D. Vance prepared to depart 
for Islamabad later Monday for a second round of peace talks with Iranian 
negotiators, although Tehran offered conflicting signals over its participation.

   Foreign Ministry spokesperson Esmaeil Baqaei denied Iran will be involved in 
the new diplomacy round in the Pakistani capital despite reports that 
Parliamentary Speaker Mohammad Bagher Ghalibaf would head the delegation.

   The geopolitical landscape remains fraught as the U.S. also prepares to host 
separate talks between Israel and Iran's ally Lebanon.

   President Trump stated that he was under no pressure to secure a deal with 
Iran and that he would not lift the embargo on ships entering or leaving 
Iranian ports, until an agreement was reached.  He posted on his Truth Social 
site on Monday that he wished to strike a better nuclear deal with Iran than 
the 2015 treaty by his predecessor Barack Obama.

   Iran has said there will be no deal with the U.S. until the embargo on its 
ports is lifted. Iranian Foreign Minister Abbas Araghchi, in a call with his 
Russian counterpart Sergei Lavrov, said his government will be monitoring U.S. 
behavior before deciding next moves. Araghchi characterized recent U.S. actions 
as contradictory and incompatible with genuine diplomacy.

   On the oil supply front, the International Energy Agency (IEA) said that 
global energy markets could face extreme volatility for the next two years as 
the Hormuz has lost its status as a reliable transit point.

   IEA Executive Director Fatih Birol cautioned that the group might have to 
tap its emergency oil reserves again as fuel supply problems were beginning to 
hit Europe. A total of 32 member countries in the IEA unanimously agreed on 
March 11 to release a total of 400 million barrels of oil from their emergency 
reserves.

    




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