International oil prices reverse course and plunge 13% in a week

[The Financial News]


International oil prices turned downward again on the 10th (local time).
Reports that the United States will extend the suspension of sanctions on Russian oil pushed prices lower.
According to CNBC, Brent crude oil for June delivery, the global benchmark, fell by $1.78, or 1.84%, from the previous session to $94.69 per barrel.
West Texas Intermediate crude oil (WTI) for May delivery, the US benchmark, closed at $96.57 per barrel, down $1.30, or 1.33%.
Brent crude oil and WTI plunged 13.2% and 13.4%, respectively, over the past week.
A dramatic agreement on a two-week cease-fire between the United States and the Islamic Republic of Iran on the 7th sharply dragged prices down, sending them below $100 per barrel.
Oil prices have been falling on expectations that the Strait of Hormuz will reopen and supplies will normalize following the cease-fire deal, but uncertainty remains high.
In reality, the strait remains effectively blocked. Iran has declared it will restrict passage, and there are indications that ships using the route are paying hefty transit fees.
US President Donald Trump is also issuing hard-line statements. He warned that Iran’s imposition of transit fees amounts to "global extortion using an international waterway" and added, "The only reason Iran is still around today is to negotiate."
Oil supplies from the Kingdom of Saudi Arabia (KSA) are also facing disruptions.
An east–west pipeline was hit by a drone attack, and both the Manifa oil field and the Khurais field were struck. As a result, production has been reduced by about 600,000 barrels per day, and transportation has been disrupted by roughly 700,000 barrels per day.
Meanwhile, Reuters, citing sources, reported that as early as the 10th the US is expected to extend its purchases of Russian oil.

dympna@fnnews.com Song Kyung-jae Reporter