Investors have been pricing in renewed geopolitical tensions in the Middle East, pushing crude futures to surge by over three percent on Thursday as the second round of U.S.-Iran talks remains at a standstill.
The West Texas Intermediate for June delivery increased by 3.11 percent to settle at 95.85 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery jumped by 3.10 percent to settle at 105.07 U.S. dollars a barrel on the London ICE Futures Exchange.
Data recently released by the U.S. Energy Information Administration (EIA) showed U.S. refined oil inventories, including gasoline, last week posted a far steeper drop than the market had expected.
The sharp decline indicates a shortfall in supply to meet downstream demand, contributing to Thursday's surge in oil prices.
U.S. President Donald Trump said Tuesday that he will extend the ceasefire with Iran at Pakistan's request, but did not specify an end date.
While the move is welcomed, it has yet to generate momentum for dialogue. Iran has made it clear that it will not engage in a new round of talks unless Trump lifts his blockade on ships entering and exiting Iranian ports in the Strait of Hormuz.
Crude futures surge by over 3 pct on Thursday amid stalled US-Iran talks
