Brent plunges on renewed US-Iran ceasefire hopes

The front-month ICE Brent contract has declined by $9.41/bbl on the day, to trade at $103.29/bbl at 09.00 GMT.

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Upward pressure:

Brent crude’s price has felt some upward pressure after the American Petroleum Institute (API) reported a sizeable decline in US crude stocks.

US crude oil inventories fell by 8.1 million bbls in the week ending 1 May, according to estimates by the API.

A decline in US crude stocks typically indicates improvement in demand for oil and can put some upward pressure on Brent's price.

Downward pressure:

Brent crude’s price has lost nearly $10/bbl in the previous session following media reports suggesting a ceasefire deal between the US and Iran could be reached soon.

“The oil market has come under renewed pressure as the US-Iran ceasefire appears to still be holding despite a recent flare-up in tensions,” two analysts from ING Bank said.

​A report by Axios stated the US and Iran are finalising a one-page memo to end the Middle East conflict – sending oil prices lower.

Earlier today, US President Donald Trump said that progress has been made toward reaching a ceasefire deal with Tehran.

“Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran,” Trump wrote on social media platform Truth Social.

By Aparupa Mazumder

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