Global Oil Prices Plunge on Hopes of Renewed Iran Talks

[Financial News]

International oil prices tumbled on the 14th (local time).
A remark by President Donald Trump that the United States and Iran could resume cease-fire talks in Islamabad, Pakistan, within two days pushed prices lower.
According to CNBC, June futures for Brent Crude Oil, the global benchmark, settled at 94.79 dollars a barrel, down 4.57 dollars, or 4.60%, from the previous session.
May contracts for West Texas Intermediate crude oil (WTI), the U.S. benchmark, plunged 7.80 dollars, or 7.87%, to close at 91.28 dollars a barrel.
At a briefing that day, United States Central Command (CENTCOM) said that after U.S. warships sealed off the Strait of Hormuz, not a single vessel had been able to pass through, stoking fears of disruptions to energy shipments and raw-material logistics. However, expectations for a cease-fire deal eased those concerns.
The Trump administration stated that no official timetable had been set for renewed talks with Iran, but President Donald Trump told the New York Post in an interview that a meeting could be arranged within two days and voiced optimism.
A downbeat outlook in the International Energy Agency (IEA)'s monthly oil market report also contributed to the decline in prices.
The IEA projected that high prices will cause global oil demand in the second quarter to fall by 1.5 million barrels per day. That would be the largest drop since the COVID-19 pandemic.
For the full year, the IEA now expects global oil demand to be 80,000 barrels per day lower than in its previous forecast, which had called for an increase of 640,000 barrels per day.

dympna@fnnews.com Song Kyung-jae Reporter