Oil futures fell midday Thursday after reports that the White House intends to maintain its cease-fire with Iran.
As of 11:55 a.m., the July West Texas Intermediate contract fell $3 to $93.02/bbl with August down $2.75 at $89.96/bbl. The August ICE Brent crude contract was trading $2.73 lower at $95.04/bbl, with September down $2.66 at $92.48/bbl.
The July RBOB contract fell 12.52cts to $3.0054/gal, with August down 11.67cts at $2.9561/gal. The July ULSD contract was trading 16.02cts lower at $3.6879/gal, with August down 14.42cts at $3.6327/gal.
Crude futures retreated after The Wall Street Journal reported that President Trump has told aides the threshold for resuming full-scale conflict with Iran would be the killing of U.S. troops by Tehran. The report suggested that Washington remains committed to preserving the cease-fire despite continued strikes in the region.
Additional pressure followed reports that Israel and Lebanon agreed to a cease-fire contingent on Iran-backed Hezbollah ending hostilities. Deutsche Bank analysts said the development could help remove a key sticking point in U.S.-Iran negotiations and contributed to the reversal of three consecutive sessions of gains in crude futures.
