Oil prices fall on hopes of U.S.-Iran deal despite Tehran pushback
Brent and WTI futures fell during the Asia session on Friday after Washington said it had agreed a framework to end its conflict with Iran. According to CNBC, Tehran disputed the market's optimism, saying final-stage details remained open. Traders focused on the resumption of tanker traffic through the Strait of Hormuz.
CNBC said Brent futures fell 2.4 per cent in the Asia session to $77.80 a barrel, while US crude eased to $73.90. A National Security Council spokesperson said the White House had agreed a framework with Iran and expected the deal to be signed in the coming days. Iran's Foreign Ministry spokesperson Esmaeil Baghaei told state media that "no commitment is final yet".
CNBC, citing Goldman Sachs analysts, said a de-escalation could trim the forward risk premium by $4 to $6 a barrel. JPMorgan's commodities desk pencilled in a $70 to $75 Brent range if the framework keeps tanker flow through Hormuz intact and Tehran gradually eases its export curbs. Energy Aspects noted that Saudi Arabia has so far kept its November output unchanged.
The US Department of Energy said it had no plans for the moment to release barrels from the Strategic Petroleum Reserve. In Asian equities, the MSCI Asia-Pacific index added 0.6 per cent and airline stocks rose with the fuel outlook. Not investment advice.
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