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Crude Oil Prices Climb as Supply Concerns Escalate Amid Lack of Peace Deal

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Crude oil prices saw gains on Tuesday amid dissipating hopes that an agreement between the U.S. and Iran to end the war will be reached.

Brent crude at last look rose 2.9% to US$107.21/barrel and West Texas Intermediate crude climbed 3.3% to $101.32/barrel. Disagreements persist between the two countries over demands that include the cessation of hostilities, the removal of the U.S. naval blockade, the resumption of Iranian oil sales and compensation for war damage, Reuters said in a Tuesday report.

"Optimism regarding an imminent (peace) deal seems to be fading again and if we don't see a deal by the end of May, then upside risks for oil prices are definitely on the table," Reuters quoted DBS Bank energy sector team lead Suvro Sarkar as saying.

The continued near-closure of the Strait of Hormuz has led to curtailed exports, with a Reuters survey showing that output from the Organization of the Petroleum Exporting Countries fell to its lowest level in over two decades in April, the report said.

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