Daijiworld Media Network - New York
New York, Apr 22: Oil prices edged lower on Wednesday after an early rise in Asian trade, as investors assessed uncertainty surrounding ceasefire talks between the United States and Iran following Washington’s decision to extend the truce.
Brent crude futures fell 21 cents, or 0.2%, to $98.27 a barrel at 0039 GMT, after earlier touching $99.38. Meanwhile, West Texas Intermediate (WTI) dropped 28 cents, or 0.3%, to $89.39, after climbing as high as $90.71.
Both benchmarks had gained about 3% in the previous trading session.
The movement in prices comes after US President Donald Trump said he would indefinitely extend the ceasefire with Iran to allow more time for negotiations. However, the announcement appeared unilateral, with no immediate confirmation from Iran or US ally Israel on whether they would adhere to the extension.
Market sentiment remains fragile amid ongoing disruptions in the Strait of Hormuz, a key shipping route that carries nearly 20% of global oil and LNG supplies. Reports indicated minimal activity in the channel, with only three ships passing in the last 24 hours.
Analysts said the lack of clarity around the outcome of talks and continued disruption in the Strait has left the market without clear direction. At the same time, the US has maintained a naval blockade of Iranian ports, a move Tehran has described as an act of war.
Iran has not officially responded to the ceasefire extension. However, the Tasnim News Agency reported that Tehran neither requested the extension nor softened its stance, reiterating its opposition to the blockade.
Beyond the Middle East, geopolitical developments elsewhere are also influencing oil markets. Ukraine has indicated that the Druzhba pipeline could resume operations, though sources suggest Russia may halt oil exports from Kazakhstan to Germany via the route starting May 1.
Investors are also closely watching fresh US inventory data. Market sources indicated that crude inventories in the US fell by 4.5 million barrels last week, while analysts estimate a draw of about 1.2 million barrels for the week ended April 17.
With ceasefire talks still uncertain and supply disruptions continuing, oil markets are expected to remain volatile in the near term.