DTN Oil Update
WTI Near $90 as Trump Threatens End to Iran Ceasefire
SECAUCUS, N.J. (DTN) -- Oil markets resumed their climb Monday, following week's tumble over news of the Strait of Hormuz's reopening, as Tehran announced it had closed again the main waterway for Middle East oil shipments.
U.S. President Donald Trump added to the geopolitical premium in oil by warning that the U.S.-Israel ceasefire on Iran will not be extended beyond Wednesday, April 22.
NYMEX WTI crude for May delivery settled up $5.76, or nearly 7%, at $89.61 bbl, after reaching an intraday high of $91.20. May WTI tumbled almost 12% on Friday, April 17.
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The ICE Brent crude contract for June closed up $5.10, or around 6%, at $95.48 bbl, following a session peak at $97.50. June Brent lost about 5% in the prior session.
Among refined products, diesel proxy ULSD settled Monday's trading for the May contract on NYMEX up $0.1435 at $ 3.5409 gallon. In gasoline, NYMEX RBOB futures for May ended up $0.112 at $ 3.1168 gallon.
The U.S. Dollar Index gained 0.112 points against a basket of foreign currencies to 98.01 points by 2:41 p.m. EDT.
Oil prices rebounded as U.S. Vice President JD Vance prepared to depart for Islamabad later Monday for a second round of peace talks with Iranian negotiators, although Tehran offered conflicting signals over its participation.
Foreign Ministry spokesperson Esmaeil Baqaei denied Iran will be involved in the new diplomacy round in the Pakistani capital despite reports that Parliamentary Speaker Mohammad Bagher Ghalibaf would head the delegation.
The geopolitical landscape remains fraught as the U.S. also prepares to host separate talks between Israel and Iran's ally Lebanon.
President Trump stated that he was under no pressure to secure a deal with Iran and that he would not lift the embargo on ships entering or leaving Iranian ports, until an agreement was reached. He posted on his Truth Social site on Monday that he wished to strike a better nuclear deal with Iran than the 2015 treaty by his predecessor Barack Obama.
Iran has said there will be no deal with the U.S. until the embargo on its ports is lifted. Iranian Foreign Minister Abbas Araghchi, in a call with his Russian counterpart Sergei Lavrov, said his government will be monitoring U.S. behavior before deciding next moves. Araghchi characterized recent U.S. actions as contradictory and incompatible with genuine diplomacy.
On the oil supply front, the International Energy Agency (IEA) said that global energy markets could face extreme volatility for the next two years as the Hormuz has lost its status as a reliable transit point.
IEA Executive Director Fatih Birol cautioned that the group might have to tap its emergency oil reserves again as fuel supply problems were beginning to hit Europe. A total of 32 member countries in the IEA unanimously agreed on March 11 to release a total of 400 million barrels of oil from their emergency reserves.