Crude oil futures experienced an increase on Thursday as diplomatic negotiations between the US and Iran showed little progress, coupled with the closure of the Strait of Hormuz to vessel traffic.
As of 9:17 AM on Thursday, June Brent oil futures traded at $103.35, marking a 1.41 percent rise, while June crude oil futures for West Texas Intermediate (WTI) reached $94.60, up by 1.76 percent. Additionally, May crude futures on the Multi Commodity Exchange (MCX) opened at ₹8937, an increase of 2.45 percent from the previous close of ₹8723; June futures were priced at ₹8510, up by 1.92 percent compared to the previous day’s closing of ₹8350.
Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, noted in their Commodities Feed for Thursday that optimism for a resolution between the US and Iran is diminishing as peace talks falter. The recent seizure of two vessels by Iran while attempting to pass through the Strait of Hormuz raises further concerns about potential disruptions to oil shipments.
Patterson and Manthey indicated that the market is adjusting its expectations, which led to Brent crude crossing back above $100 per barrel. They warned that if negotiations continue to stall, the market may gradually become desensitized to recent headlines that have significantly influenced price movements.
In a post on X, Iranian President Masoud Pezeshkian highlighted Iran’s willingness for dialogue and cooperation but criticized what he termed the “breaches of commitments, blockade, and threats” as major hindrances to constructive negotiations. His comments were directed towards US President Donald Trump, stating, “The world sees your endless hypocritical rhetoric and contradiction between claims and actions.”
Simultaneously, ING Think’s report underscored a growing trend of demand destruction in the oil market, a situation expected to worsen amid ongoing supply disruptions in the Persian Gulf. Airlines have been announcing flight cancellations as jet fuel supply tightens and prices rise. Europe remains heavily reliant on oil and jet fuel imports from the Persian Gulf, prompting discussions on seeking alternative supply sources while heavily depending on existing inventories.
Data from the US Energy Information Administration (EIA) revealed that the US is exporting record quantities of oil and refined products, as global buyers turn to alternative sources. The report indicated that total oil and refined product exports rose by 137,000 barrels per day, reaching 12.88 million barrels per day.
Although the US market has managed to remain relatively insulated from disruptions in West Asia, prolonged instability is tightening market conditions, encouraging an urgent shift towards US supplies, noted ING Think.
The EIA’s petroleum status report for the week ending April 17 indicated that US commercial crude oil inventories grew by 1.9 million barrels from the previous week. Meanwhile, total motor gasoline inventories fell by 4.6 million barrels, and distillate fuel inventories decreased by 3.4 million barrels.
Over the last four weeks, total products supplied in the US averaged 20.5 million barrels per day, reflecting a 3 percent year-on-year increase. Motor gasoline product supply averaged 8.8 million barrels per day during this timeframe, up by 1.7 percent from the previous year, while the average daily supply of distillate fuel products rose 3.4 percent to 4 million barrels. However, jet fuel supply was down by 6.5 percent compared to the same four-week period last year.
Published on April 23, 2026
