TOKYO: As investors considered the likelihood of a Middle East peace accord working, oil prices increased by more than $1 on Thursday, recovering from the steep losses of the day before. At 7:00 a.m. Saudi time, Brent crude futures were up 78 cents, or 0.8 percent, at $102.05 a barrel. At $95.84 a barrel, US West Texas Intermediate increased by 76 cents, or 0.8%.
Due to optimism about a potential end to the Middle East conflict, both benchmarks fell more than 7% on Wednesday, reaching two-week lows. However, after US President Donald Trump declared that face-to-face negotiations with Tehran were “too soon” and a prominent Iranian politician stated that the US plan was more of a wish list than a reality, they were spared damages.
According to Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a division of Nissan Securities, “peace negotiations are likely to continue at least until next week’s US-China summit, the outlook beyond that remains uncertain.” Next week, Trump will meet with Chinese President Xi Jinping.According to Kikukawa, “the main scenario is that oil prices will remain elevated.”
Iran announced on Wednesday that it was examining a US peace plan that, according to reports, would legally end the conflict but leave unfulfilled the main US demands that Iran halt its nuclear program and reopen the Strait of Hormuz.
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