Oil Prices Plummet as US-Iran Ceasefire Concerns Weigh on Markets
Oil prices declined on Friday after a significant surge the previous day as investors weighed the possibility of a US-Iran ceasefire. The Brent futures price fell by $0.87, or 0.82%, to $105.73 per barrel, while U.S. crude oil (WTI) lost $1.56, or 1.65%, to $93.05.
The gap between Brent and WTI prices widened to $12.68 a barrel, the largest spread since May, due in part to concerns that the US may ban diesel exports, increasing domestic supply. According to Tim Waterer, an analyst at KCM Trade, the wide price gap is also attributed to differing regional risks.
Saudi Arabia has increased oil pumping through the East-West pipeline to Yanbu on the Red Sea coast, but oil tanker loadings have yet to resume, as indicated by industry sources, satellite imagery, and vessel-tracking data.