Oil prices slump after US reported to be close to framework deal to end Iran war

By Shadia Nasralla

LONDON, May 6 (Reuters) - Oil prices extended declines connected Wednesday, slumping to two-week lows aft Axios reported that Washington believed it ‌was adjacent to a one-page model statement with Iran to extremity the ‌war.

Brent crude futures fell $6.70, oregon 6.1%, to $103.17 a tube by 0856 GMT aft touching their lowest successful ​almost 2 weeks. U.S. West Texas Intermediate mislaid $6.77, oregon 6.6%, to $95.50.

Both benchmarks were connected way for their biggest regular declines successful some percent and implicit presumption since mid-April, having shed astir 4% successful the erstwhile session.

The U.S. expects Iranian responses connected respective ‌key points successful the adjacent ⁠48 hours, Axios reported. Though thing has yet been agreed, the study said this was the closest the parties person travel ⁠to an statement since the warfare began.

Iran had said earlier that it would lone judge a just and broad agreement.

The U.S. subject said connected Monday that it destroyed ​several Iranian ​small boats arsenic portion of efforts to ​help stranded ships to exit the ‌Strait of Hormuz.

The crude lipid proviso losses from halted marine postulation done the strait since the warfare began successful February person driven up prices, with Brent trading past week astatine its highest since March 2022.

The Strait of Hormuz closure has resulted successful a drawdown successful planetary lipid and substance inventories arsenic refineries effort to ‌offset accumulation shortfalls.

U.S. crude lipid inventories fell for ​a 3rd week, portion gasoline and distillate stocks ​also declined, marketplace sources said ​on Tuesday, citing American Petroleum Institute figures.

Crude stocks fell by 8.1 ‌million barrels successful the week ended ​May 1, the sources ​said. Gasoline inventories were down by 6.1 cardinal barrels from a week earlier and distillate inventories fell by 4.6 cardinal barrels, the sources said.

Official numbers ​from the EIA, the ‌statistical limb of the U.S. Department of Energy, are owed astatine 1430 ​GMT.

(Reporting by Shadia NasrallaAdditional reporting by Helen Clark successful Melbourne and ​Jeslyn Lerh successful SingaporeEditing by David Goodman)