-- West Texas Intermediate (WTI) crude oil rose on Thursday, but remained below the US$100 mark on hopes the United States and Iran will extend their ceasefire and resume talks to end war in the Middle East.
WTI crude oil for May delivery closed up US$3.40 to settle at US$94.69 per barrel, while June Brent oil was last seen up US$4.29 to US$99.22.
The U.S. Navy is blockading Iranian ports while Iran continues to block the Strait of Hormuz. However, according to the Wall Street Journal, U.S. President Trump on Thursday said talks with Iran could take place this weekend and he is open to extending a ceasefire.
"We're very close to making a deal," the paper quoted Trump saying.
The Strait of Hormuz is the choke point for 20% of global daily oil demand supplied by Persian Gulf nations. The supply shock has hit hardest in Asian nations, where some countries have introduced rationing while bidding up prices for immediately available supplies that are fetching near US$150 per barrel.
"Oil has steadied ... on signs the US and Iran may extend a ceasefire and restart talks aimed at ending a war that has choked global supplies of key commodities from the Persian Gulf. This has triggered a major supply shock, the impact of which continues to build globally, with the relative calm and sub-USD 100 futures prices not fully reflecting the reality in the physical market," Saxo Bank noted.