NEW YORK: Oil prices were mixed on Tuesday with Brent flat on worries that high energy prices could cause slower economic growth, and US crude on track for its highest close since 2022, ahead of US President Donald Trump’s deadline for Iran to open the Strait of Hormuz.
Brent futures rose 26 cents, or 0.2 percent, to USD110.03 a barrel at 1:42 p.m. EDT (1742 GMT).
US West Texas Intermediate crude rose USD1.84, or 1.6 percent, to USD114.25.
Typically WTI trades at a discount to Brent, but this has reversed in a market where barrels for earlier delivery command a higher price. The benchmark WTI contract is for May delivery while Brent is for June.
WTI was on track to close at its highest level since June 2022 for a fourth day in a row. At the end of March, when the Brent front-month was for delivery in May, Brent also closed at its highest since June 2022.
“WTI crude is … extending gains as the market leans further into a prolonged disruption scenario rather than a near-term resolution,” analysts at energy consulting firm Gelber & Associates said.
The premium of the WTI front-month over the second-month was on track to close at a record high for a second day in a row.
“Time spreads have continued to widen, signalling that the tightness is most acute in the prompt market as refiners compete for immediately available barrels,” Gelber said. European and Asian refiners are paying record-high prices of near $150 a barrel for some crude oil grades, far exceeding prices for paper futures, highlighting the worsening supply crisis from the US-Israeli war on Iran.
“Whole civilization will die tonight”
Trump threatened that “a whole civilization will die tonight” as Iran showed no sign of accepting his ultimatum to open the Strait of Hormuz by Tuesday evening. The strait handles about 20 percent of global oil and liquefied natural gas flows. Trump has given Iran until 8 p.m. in Washington, 3:30 a.m. in Tehran, to end its blockade of Gulf oil or see the US destroy every bridge and power plant in Iran. Iran has said it would retaliate against US allies in the Gulf.
Talks between the US and Iran were at risk of being derailed following Tehran’s attacks on Saudi Arabian industrial facilities, two Pakistani sources with knowledge of the discussions told Reuters on Tuesday.
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