Reports suggested the U.S. and Iran are at their closest point to reaching a peace deal to end their war and the news sent crude oil prices downward to two-weeks lows on Wednesday.
Brent crude, the global benchmark, fell nearly 8% with a drop of $8.60 a barrel, closing at $101.27. In trading earlier in the day, it fell below $100 for the first time since April 22.
West Texas Intermediate, the U.S. standard, dropped $7.19 or 7.03% a barrel to close at $95.08 on the New York Mercantile Exchange.
Reuters reported a source from mediator Pakistan said the United States and Iran were closing in on an agreement on a one-page memorandum of understanding.
U.S. media outlet Axios reported that the U.S. expects Iranian responses on several key points in the next 48 hours, citing sources saying this was the closest the parties had come to an agreement since the war began.
US exports surge
At the same time, U.S. oil product exports surged to a record 8.2 million barrels a day last week as the world rushed to replace fuel supplies disrupted by the crisis in the Strait of Hormuz. Countries competed for oil and refined products including diesel, jet fuel and gasoline. Europe faces a growing shortage of jet fuel and more U.S. barrels are being pulled into the international markets.
Natural gas fell as well in Wednesday’s trading. It dropped $0.072 or 2.58% to close at $2.716 MMBtu.
Wednesday was a tough day for Oklahoma energy stocks as only two of the 20 firms we monitor recorded gains for the day. Nearly 9% losses were each recorded by Coterra Energy and Devon Energy as their merger was to formally take effect on Thursday. Gulfport Energy also experienced an 8% decline and Mammoth Energy dropped 7%.