Brent crude prices drifted lower in early Tuesday trading, hovering around $93 per barrel. Traders have reasons to be both optimistic and cautious about the prospects for a lasting peace between the US and Iran that would allow the normalisation of maritime traffic through the Strait of Hormuz. Reports emerged over the weekend of military strikes by both sides, while on Monday the Iranian news agency reported that Tehran had paused communications with US intermediaries. At the same time, the US President reaffirmed his belief that an agreement to extend the ceasefire and reopen the Strait of Hormuz remains within reach. Against this backdrop, Brent crude prices continue to trade within the relatively narrow range seen over the past week, roughly between $90 and $96 per barrel, although the potential remains for more significant moves should there be any substantial developments. Traders will also be watching for the release later today of the American Petroleum Institute's report on US crude inventories. Significant deviations in the reported stockpile figures could also influence global oil prices.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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