Oil prices fall 6% on Iran deal prospects

Investors wary as supply disruption continues

NEW YORK:

Oil prices fell 6% on Wednesday after U.S President Donald Trump said that negotiations with Iran were in the final stages, though investors remain wary about the outcome of peace talks as disruption to Middle Eastern supply continues.

Brent crude futures fell $6.64, or 5.97%, to $104.64 a barrel by 1745 GMT and US WTI futures were down $6.49, or 6.23%, at $97.66.

Trump said that negotiations with Iran were in the final stages but warned of further attacks unless Iran agrees to a deal. Iranian foreign ministry spokesperson Esmaeil Baghaei said Iran was ready to develop protocols for safe shipping traffic in cooperation with other coastal states, without providing further details.

The premium on Brent contracts for delivery next month over contracts for delivery in six months – an indicator of traders' views of current supply tightness – is around $20 a barrel, way below last month's highs above $35.

Russian Deputy Prime Minister Alexander Novak said on Wednesday that some countries were lifting sanctions on Russian oil because global markets cannot function without it, the state TASS news agency reported.

UAE ADNOC Chief Executive Sultan Al Jaber said on Wednesday it will take at least four months to get back to 80% of pre-conflict flows.

US crude stockpiles fell last week as demand remained elevated, the EIA said on Wednesday.