Oil Extends Fall Ahead of Further Talks

WTI crude futures dropped toward $90 per barrel on Wednesday, extending losses from the previous session as investors anticipated a second round of peace negotiations between the US and Iran before the two-week ceasefire lapses. President Donald Trump reportedly indicated talks could restart “within the next two days” in Pakistan after last weekend’s discussions broke down. The US continues to enforce a naval blockade on Iranian oil exports through the Strait of Hormuz, while Tehran is weighing a temporary halt in shipments via the corridor to support progress toward a deal. Meanwhile, the IEA expects global oil demand to decline this year for the first time since the 2020 pandemic, as elevated prices curb consumption. Separately, the API reported that US crude inventories increased by 6.1 million barrels last week, marking the eighth straight build.

WTI crude oil futures extended their losses, plunging more than 7% to fall below $92 per barrel on Tuesday marking their lowest level in roughly three weeks, amid reports that US-Iran talks may resume soon, raising optimism about a potential full reopening of the Strait of Hormuz. Negotiators aim to hold further discussions before the ceasefire expires next week. US President Trump indicated that talks could restart “within the next two days” in Pakistan and Tehran is reportedly considering a temporary pause in shipments through the Strait of Hormuz to facilitate progress toward an agreement, according to reports. At the same time, President Trump has launched a US naval blockade in the Strait, targeting Iran’s oil exports. The IEA warned that the ongoing conflict could wipe out global oil demand growth this year, resulting in the first annual decline since the pandemic. The agency also cautioned that current prices may not yet fully reflect the scale of the disruption

WTI crude oil futures dropped below $92 per barrel on Tuesday, amid signs the US and Iran may resume talks, following Washington’s move to impose a blockade on the Strait of Hormuz. Discussions are underway to hold another round of negotiations before a two-week ceasefire expires, with reports suggesting talks could take place in Pakistan. The sides failed to reach an agreement after extended weekend negotiations, prompting Trump to announce a blockade on Iranian oil shipments. Saudi Arabia has urged the US to lift the blockade and return to diplomacy. Meanwhile, the IEA warned the conflict could erase global oil demand growth this year, marking the first annual decline since the pandemic, while noting prices may not yet reflect the scale of the disruption. The war has damaged energy infrastructure and severely restricted traffic through the Strait of Hormuz, with an OPEC+ report showing output fell by 7.9 million barrels per day in March.