(RTTNews) – Crude oil has edged higher on Wednesday as traders weighed the prospects of success in the upcoming second round of U.S-Iran talks against the ongoing U.S. blockade on all Iranian ports across the Strait of Hormuz, which is keeping the supply concerns alive.
WTI Crude Oil for May month delivery was last seen trading up by $0.36 (or 0.39%) at $91.64 per barrel.
Following the two-week ceasefire announcement in the U.S.-Iran war by U.S. President Donald Trump last week, a U.S. delegation led by Vice President JD Vance headed to Pakistan on Friday to commence discussions with Iranian counterparts on Saturday.
On Sunday, Trump called the U.S.-Iran talks a “failure.” Trump stated that Iran’s refusal to wind up its nuclear ambitions were the cause for the negotiations falling apart. As a result, oil prices soared due to supply concerns.
On Monday, under Trump’s orders, U.S. naval forces enforced a blockade on ships traveling from and to Iranian ports across the Strait of Hormuz.
U.S. forces have been turning back multiple vessels to enforce a near-complete halt on shipping from and to Iran though ships travelling to and from non-Iranian ports are allowed to navigate.
Markets calmed a little after Trump stated in an interview with the New York Post yesterday that the U.S. delegation would be visiting Pakistan again to hold talks with their Iranian counterparts.
Today, in an interview with Fox Business Network, Trump claimed that the Iran war was “close to over” though he added that the job is not yet finished and stressed that Iran wanted a deal “very badly.”
Meanwhile, the International Monetary Fund warned of risk of an economic recession globally if oil prices continue to surge.
Global GDP growth for 2026 has been forecast at 3.10% though it is predicted to fall to 2.00% if the situation turns severe.
While talking to ABC News correspondent, Trump hinted at “a major turning point” coming up this week and stated that he considered an extension of ceasefire unnecessary.
Iran’s official news agency IRNA quoted President Masaoud Pezeshkian as stating that diplomacy is the preferred path to resolve disputes.
Experts are doubtful of a positive outcome from peace talks since Trump vehemently opposes Iran having any nuclear weapons while hardliners in the Iranian government are not ready to concede to Trump’s demands.
In addition, Iran wants Israel’s ongoing military campaign against Lebanon’s Hezbollah military group to be included in the ceasefire, while the U.S. opposes the move.
Of relevance, a high-level meeting between Israel and Lebanon delegations was held in Washington yesterday, mediated by U.S. Secretary of State Marco Rubio with no breakthrough announcements on the progress or next round of talks.
On the inventory front, data from the American Petroleum Institute revealed that crude oil inventories in the U.S. jumped by 610,000 barrels for the week ending April 10, further speeding up the 3,720,000-barrel-increase of the previous week.
According to the U.S. Energy Information Administration, for the week ending April 10, crude oil inventories in the U.S. decreased by 910,000 barrels.
For the same period, gasoline inventories decreased by 6,328,000 barrels and distillate inventories decreased by 3,122,000 barrels.
Yesterday, the IEA stated that global demand for oil would shrink more than the Covid-19 pandemic period.
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