Crude futures fall on new Iran proposal for peace talks

“Oil An Iranian proposal for talks with the US sent crude futures sharply lower on Friday, though prices were still on track for weekly gains. Tehran continues to block the Strait of Hormuz, while the US Navy restricts Iranian crude exports. Oil markets remain volatile on hopes of a resolution. Brent crude futures settled at $108.17, and US West Texas Intermediate crude (WTI) finished at $101.94. For the week, Brent rose 2.7%, while WTI rose by 8.0%. A senior official of Iran's Revolutionary Guards threatened on Thursday 'long and painful strikes' on US positions if Washington renewed attacks on Iran, pushing oil prices to intraday peaks before retreating. Meanwhile, UAE presidential adviser Anwar Gargash said Tehran could not be trusted over any unilateral arrangements it makes for the Strait of Hormuz, in a sign of deep mistrust on all sides. Gas Asia spot liquefied natural gas (LNG) prices rose last week as efforts to end the Iran war remained at an impasse, while an extended force majeure on Qatari volumes supported prompt markets. The average LNG price for June delivery into northeast Asia was $17.80 per million British thermal units, up from $16.70 per mmBtu the week before. With the Strait of Hormuz is still largely closed, QatarEnergy has issued more force majeure notices for deliveries in June-July, which may boost Asian demand for summer cargoes, trading sources said. In Europe, the Dutch TTF gas price settled at $15.49 per mmBtu, posting a weekly gain of 2.0%. Strengthening demand from Asia, supported by expectations of robust summer cooling demand and tighter regional supply, has reinforced competition between the Atlantic and Pacific basins. This article was supplied by the Abdullah bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development.

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