Oil prices fall on hopes for US-Iran ceasefire
File photo: Oil prices are falling amid expectations of a truce between the US and Iran (collage by RBC-Ukraine)
Oil prices fell slightly on September 25 following a sharp rise the previous day, as markets assessed the prospects for a ceasefire between the US and Iran, according to Reuters.
The price of Brent crude fell by 87 cents (or 0.82%) to $105.73 per barrel, while West Texas Intermediate (WTI) crude fell by $1.56 (or 1.65%) to $93.05 per barrel.
On Thursday, September 24, oil prices reached a weekly high. Prices for both types of crude rose by 5%: Brent closed the day up 3.4%, and WTI up 2.7%.
For Brent crude, this was the highest closing price since September 15. Meanwhile, for WTI, this marked the first increase in a long time: over the previous six trading sessions, it had lost 13%, and for the week, it fell by 6.42% (while Brent rose by 2.09% over the same period).
The spread between Brent and WTI prices reached $12.68—the widest gap since May, when it exceeded $13.
This divergence is largely driven by concerns over a potential US ban on diesel fuel exports, which could lead to an oversupply in the domestic market. Typically, these two benchmark crude grades move in tandem, although US WTI traditionally trades at a discount to Brent.
"Diplomatic hopes are essentially helping oil prices weather the latest military strikes in the Middle East, with crude trading moderately softer despite the attacks," notes Tim Waterer, chief analyst at KCM Trade.
US and Iranian representatives in New York are considering a phased path to resolving the conflict, which would involve Tehran resuming shipping through the Strait of Hormuz and Washington lifting its economic blockade of Iran.
According to industry sources, satellite imagery, and shipping data, Saudi Arabia is increasing the volume of crude oil transported via the East-West pipeline, which leads to the export terminal at the port of Yanbu on the Red Sea coast, although tanker loading has not yet resumed.
The administration of US President Donald Trump is considering a 90-day ban on diesel exports to curb rising fuel prices.
