Oil Prices Steady After Swinging on Iran Deal Talk


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Oil prices settled little changed after a volatile 
session Thursday (5/28) amid reports that U.S. and Iranian negotiators were 
closing in on a deal to extend their ceasefire and reopen the Strait of Hormuz 
that is critical to energy shipping.

   An across-the-board decline last week in U.S. crude and product inventories 
provided some support to energy markets in the absence of U.S. President Donald 
Trump's approval for the Iran deal. In Tehran as well, the leadership said it 
had not finalized details discussed by its negotiators in talks held with U.S. 
officials in Qatar.

   Thursday's reported deal could mark a major breakthrough toward formally 
ending the U.S.-Israeli bombings of Iran that began on February 28. Those 
initial strikes triggered retaliatory attacks by Tehran on regional energy 
infrastructure and a blockade of the crucial Strait of Hormuz waterway. The 
strategic transit point handles a fifth of global energy shipments.

   While an early April ceasefire has loosely held, analysts warn intense 
negotiations remain ahead over Iran's nuclear program, especially after 
President Trump dismissed an Iranian peace draft as a total fabrication.

   After hitting a session high at $92.52 bbl, NYMEX WTI for July delivery 
turned volatile by mid-morning, hitting an intraday low of $87.11. It settled 
up $0.22 at $88.90 bbl.

   ICE Brent for July delivery moved between $98.20 and $92.60 before settling 
at $93.71 bbl, down $0.58.

   Downstream, NYMEX ULSD futures for June delivery advanced $0.0212 to close 
at $3.6187 gallon. June RBOB rose 0.0515 to finish at $ 3.1852 gallon.

   The U.S. dollar index slipped by 0.194 points to 98.955 against a basket of 
foreign currencies by 3:00 p.m. ET.

   U.S. commercial crude inventories declined for a fifth consecutive week, 
while distillate stocks plunged to their lowest level since 2003, according to 
Energy Information Administration data for the week ended May 22. Commercial 
crude stockpiles fell by 3.3 million bbl to 441.7 million bbl, while gasoline 
inventories dropped to a fresh six-month low, falling by 2.6 million bbl to 
211.6 million bbl.




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