Oil prices fell in choppy trading on Monday as investors awaited clarity on talks between the U.S. and Iran and remained cautious about sustained supply losses caused by shipping disruptions.
Brent crude futures (LCOc1) fell 64 cents, or 0.6%, to $108.39 a barrel at 1109 GMT. U.S. West Texas Intermediate (CLc1) crude futures were down 1.2%, or $1.33, at $110.21 per barrel.
Price movements in Asian trading on Monday were overshadowed by an 11% surge in WTI and an 8% rise in Brent during the previous session on Thursday - the largest absolute price increases since 2020.
The U.S. and Iran received a framework plan to end hostilities, but Iran rejected immediately reopening the Strait of Hormuz after President Donald Trump threatened to rain "hell" on Tehran if it did not reach a deal by the end of Tuesday.
Iran also said it had formulated its positions and demands in response to recent ceasefire proposals conveyed via intermediaries.
The Strait of Hormuz, which carries oil and petroleum products from Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates, remains largely closed due to Iranian attacks on shipping following the outbreak of war on 28 February.
Some vessels, however - including an Omani-operated tanker, a French-owned container ship and a Japanese-owned gas carrier - have passed through the Strait of Hormuz since Thursday, according to shipping data, reflecting Iran’s policy of allowing passage to vessels from countries it considers more friendly.
"The market is trying to realise what to expect going forward. The most important headline this weekend has been that some ships passed through the Strait," said SEB Research analyst Ole Hvalbye.
Hvalbye also noted that Europe continued to lose physical barrels and refined products to Asia due to tightening market conditions.
Supply disruptions in the Middle East have prompted refiners to seek alternative crude sources, particularly physical cargoes from the U.S. and Britain’s North Sea. Spot premiums for U.S. West Texas Intermediate crude have surged to record highs amid competition between Asian and European refiners.
Indian refiners have also postponed maintenance shutdowns at their facilities to meet domestic fuel demand.
On Sunday, OPEC+, comprising members of the Organization of the Petroleum Exporting Countries and allies including Russia, agreed to a modest output increase of 206,000 barrels per day for May.
However, the decision is expected to remain largely theoretical, as several key producers in the group are unable to raise output due to the war.
Saudi Arabia also set the official selling price of its May Arab Light crude to Asia at a record premium of $19.50 a barrel above the Oman/Dubai average, up $17 from the previous month, according to Aramco.
Meanwhile, Russian supply has recently been disrupted by Ukrainian drone attacks on export terminals in the Baltic Sea. Media reports on Sunday said the Ust-Luga terminal resumed loadings on Saturday after several days of disruption.
Exports from the Black Sea port of Tuapse are expected to rise to 794,000 metric tonnes in April, up 8.7% on a daily basis from 755,000 metric tonnes planned for March, according to two traders and Reuters calculations.
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President Donald Trump and Chinese President Xi Jinping sought to project stability and renewed dialogue during a closely watched summit in Beijing this week, even as major disagreements over Taiwan, trade and global security remained unresolved.
Indian drivers face higher fuel costs after state-run fuel retailers raised petrol and diesel prices for the first time in four years by three rupees ($0.03) per litre, equivalent to more than 3%.
Chinese President Xi Jinping and U.S. President Donald Trump are holding high-level talks in Beijing on Thursday, following a ceremonial welcome, with both leaders highlighting cooperation despite ongoing tensions.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 14th of May, covering the latest developments you need to know.
Bulgaria has won the Eurovision Song Contest for the first time, taking victory in a final overshadowed by a boycott over Israel’s participation and the war in Gaza.
At least eight people were injured after a driver rammed a car into pedestrians in the northern Italian city of Modena, authorities said on Saturday. Four of the victims were reported to be in serious condition.
U.S. President Donald Trump said Washington could destroy Iran’s infrastructure “in two days,” while Tehran warned the U.S. would face growing economic costs from the conflict. The remarks came as Hezbollah reported new attacks on Israeli forces despite an extended Lebanon ceasefire.
At least eight people have died and 32 others were injured after a freight train collided with a public bus at a railway crossing in Bangkok on Saturday (16 May), triggering a fire that quickly spread through the vehicle.
U.S. President Donald Trump says China's Xi Jinping agreed Iran must reopen the Strait of Hormuz, as Tehran prepares a new shipping mechanism. Tensions over the U.S. blockade and stalled nuclear talks continue to disrupt global oil supplies.
U.S. President Donald Trump says China's Xi Jinping agreed Iran must reopen the Strait of Hormuz, as Tehran prepares a new shipping mechanism. Tensions over the U.S. blockade and stalled nuclear talks continue to disrupt global oil supplies.
U.S. President Donald Trump said Washington could destroy Iran’s infrastructure “in two days,” while Tehran warned the U.S. would face growing economic costs from the conflict. The remarks came as Hezbollah reported new attacks on Israeli forces despite an extended Lebanon ceasefire.
Israel and Lebanon have agreed to a 45-day extension of a ceasefire that has reduced fighting between Israel and Hezbollah in southern Lebanon. The agreement came as two days of Washington-facilitated talks concluded with a decision to hold further meetings in the coming weeks.
Iran’s Foreign Minister Abbas Araghchi said Tehran has “no trust” in the United States and will only consider negotiations if Washington shows seriousness. His remarks came as talks on Iran’s nuclear programme continued, with Trump and Xi also opposing Iran acquiring nuclear weapons.
The U.S.-Israeli war with Iran loomed over U.S. President Donald Trump's visit to China, as signs emerged that the conflict is causing a shift in alliances across the Middle East.
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