Crude oil futures retreated sharply midday Tuesday as the market weighed the potential for renewed diplomatic talks between the U.S. and Iran. As of 11:40 a.m. ET, the June ICE Brent contract was trading $3.49 lower at $95.87/bbl, with July down $2.28 at $91.19/bbl. The May West Texas Intermediate contract fell $6 to $93.08/bbl, with June trading $3.82 lower at $89.13/bbl.
Refined product futures also moved significantly lower. The May ULSD contract dropped 15.29cts to $3.6812/gal, with June down 13.27cts at $3.5226/gal. The May RBOB contract was trading 7.07cts lower at $3.0453/gal, while June was down 6.62cts at $2.9767/gal.
The price slide reflects optimism that a return to the negotiating table could lead to a nuclear deal and the eventual reopening of the Strait of Hormuz, which has been virtually closed to traffic for over a month. Analysts at Ritterbusch and Associates noted that even slight progress toward a deal can spark dramatic declines, leading prices to drop as much as $10 a barrel from the highs seen on Monday.
In the refined product markets, trading volume for RBOB and ULSD has shifted primarily to the June contracts ahead of the April 21 expiration of the WTI front-month and the April 16 expiration for May options. However, WTI and Brent continue to see heavy focus on the front-month contracts, likely due to the extreme volatility and the ongoing disconnect between paper futures and high physical cash prices.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
Reporting by Allegra Fradkin, afradkin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
04-14-26 1236ET
