Crude futures rose midday Wednesday as markets weighed the implications of a preliminary U.S.-Iran peace agreement following a sharp selloff in the previous session.
As of 11:45 a.m. ET, the July West Texas Intermediate contract was trading 89cts higher at $76.94/bbl, with August up 88cts at $76.15/bbl. August ICE Brent crude rose 87cts to trade at $79.83/bbl, with September up 83cts at $79.50/bbl.
Refined product futures were also trading higher. The July ULSD contract rose 4.21cts to $3.2123/gal, with August up 3.49cts at $3.162/gal. July RBOB climbed 1.59cts to trade at $2.8964/gal, with August up 1.28cts at $2.826/gal.
Crude futures stabilized after falling more than 5% Tuesday following reports that the U.S. and Iran had reached a preliminary agreement to end hostilities, with a formal signing expected Friday. The agreement has raised expectations that the Strait of Hormuz will eventually reopen to normal traffic and that regional oil exports will be restored, although key provisions have not been disclosed and the timeline for recovery remains uncertain.
The International Energy Agency said Wednesday that a full recovery of Persian Gulf oil flows could take months, noting that mines must be cleared from shipping lanes and supply chains will take time to normalize.
