Oil prices experienced a strong rebound this Wednesday, with increases close to 4%, after the abrupt end of the talks between Russia and Ukraine in Geneva and the increase in tension between the United States and Iran. These variables, combined, are reshaping the global energy chessboard.
At 12:27 GMT, Brent crude futures were up 4.35% to 70.35 dollars per barrel, while West Texas Intermediate (WTI) gained 4.59% to 65.19 dollars. The markets reacted immediately to the collapse of the peace negotiations, which barely lasted two hours and did not yield any concrete progress.
No progress in talks between Kiev and Moscow
Ukrainian President Volodymyr Zelenskiy described the talks as “difficult”. Russian negotiator Vladimir Medinsky described them as “practical”, although he admitted that it was impossible to reach consensus. In addition, tensions are aggravated by persistent disruptions in Russian oil supplies to Central Europe.
On the other hand, the Hungarian government suspended diesel shipments diesel shipments to Ukraine. to Ukraine. Foreign Minister Peter Szijjarto clarified that they will not be resumed unless Kiev restores the flow of Russian crude oil through the Druzhba.
U.S. AND IRAN U.S. and Iran: diplomatic advances and military threats
On the other side of the world, negotiations between the United States and Iran on the nuclear deal took a symbolic step forward, with both sides reaching an understanding on “guiding principles”, although still without a formal agreement.
Meanwhile, Iran conducted military exercises in the strategic Strait of Hormuz, temporarily closing the waterway, through which a fifth of the world’s oil transits. Tension is further heightened by the announcement of joint naval maneuvers between Iran and Russia in the Sea of Oman.
Consultancies such as Eurasia Group warn that there is a 65% probability that the United States will launch attacks against Iran before April, a factor that is beginning to be discounted by oil traders.
Expectations on U.S. reserves data
Investors are also watching inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA). Energy Information Agency (EIA).. Analysts anticipate an increase in crude oil stocks, while gasoline and distillate stocks may have been reduced.
This combination of geopolitical factors and market data fuels volatility in oil prices, which could remain elevated in the coming days if there are no signs of detente among the players involved.
Source and photo: Reuters