WTI Declines To Near $87.50 As US, Iran Talks Remain Intact

• WTI falls amid easing supply disruption fears and raising hopes for renewed peace negotiations.

• A CNN report, citing a diplomatic source, confirmed that US-Iran peace deal negotiations remain intact despite recent military clashes.

• EIA data showed US crude stocks plunged by 7.2 million barrels, far exceeding the projected 4-million-barrel draw.

West Texas Intermediate (WTI) oil price pares its recent gains from the previous day, trading around $87.60 per barrel during the European hours on Thursday. Crude oil prices declined after the US military announced it had completed its latest strikes on Iran, raising hopes that peace negotiations could resume and tempering oil supply concerns. A report from CNN has confirmed through a diplomatic source that the US-Iran negotiations toward a peace deal are intact.

However, the Guardian reported that the Iranian Foreign Ministry has condemned overnight US strikes on Tehran, saying that “The illegal and criminal attacks by the US in recent hours are not only a flagrant violation of the United Nations Charter and the fundamental rules of international law regarding respect for national sovereignty and territorial integrity of states, but have also rendered the April 8 ceasefire practically meaningless.”

Earlier, the Israeli military's Home Front Command quickly issued early warnings following rocket launches from Lebanon toward northern Israel, keeping markets on edge. This followed earlier fresh US attacks on Iran after President Trump accused Tehran of intentionally delaying talks over an interim peace agreement.

US Energy Information Administration (EIA) reported that domestic crude inventories plummeted by 7.2 million barrels last week as refiners scrambled to plug supply gaps caused by the conflict. This drop far exceeded the 4-million-barrel draw projected by analysts in a Reuters poll, dragging the Strategic Petroleum Reserve (SPR) down to its lowest levels since August 2023. In an effort to curb rising fuel costs, the US Department of Energy announced it is seeking to loan energy companies up to 40 million barrels of crude oil from the depleted reserve.