Crude Oil Prices Drop as U.S. Reportedly Nears Deal with Iran to End War
Crude oil prices plummeted on Wednesday on reports that the U.S. is nearing an agreement with Iran to end the war.Brent crude at last look dropped 6.8% to US$102.40/barrel and West Texas Intermediate crude fell 7.5% to $94.58/barrel. The reported one-page framework was the closest the parties have come to an agreement since the war began, Reuters said in a Wednesday report, citing Axios.The price hikes have been driven by oil supply losses from disruptions in traffic through the Strait of Hormuz since the war began, the report said. The closure has resulted in a drawdown in global oil and fuel inventories in efforts to offset production shortfalls.American Petroleum Institute figures showed a drop in U.S. crude oil, gasoline and distillate inventories, Reuters reported, citing market sources. The U.S. Energy Information Administration is scheduled to report official figures on Wednesday.