WTI Crude Rises More Than 5% to Hit Highest Since April 13. Citi Raises Brent Forecast to $150

TradingKey - During Tuesday's pre-market session (April 28), WTI crude surged more than 5%, hitting $101.81, its highest level since April 13. Brent crude rose nearly 4% on the day, peaking at $105.81.

In terms of news, the U.S. canceled a new round of negotiations originally scheduled to take place in Pakistan this weekend. While Iran has proposed a new plan, Trump remains dissatisfied, potentially heightening market expectations for a prolonged conflict.

Iran recently proposed a new plan and stated that negotiations could resume if the U.S. agrees to it. The conditions include implementing a new legal framework in the Strait of Hormuz, compensation for Iran, guarantees that the U.S. will no longer launch military aggression, and the lifting of maritime blockades.

As part of the proposal, both the U.S. and Iran would replace temporary ceasefires with either a long-term extension or a mutually agreed-upon permanent end to hostilities. Nuclear negotiations would only proceed after the reopening of the Strait of Hormuz and the lifting of the U.S. blockade.

However, Trump is dissatisfied with the proposal put forward by Iran because it does not address the Iranian nuclear program.

Regarding diplomatic progress, a new round of talks originally planned for Pakistan this weekend was abruptly halted. Trump canceled arrangements for his son-in-law Jared Kushner and special envoy Steve Witkoff to attend the meeting, calling it a "waste of time" and emphasizing that the U.S. remains in control.

Syed Mohammad Ali, an independent Pakistani political analyst, stated that the delay in these talks should not be viewed as a setback since indirect negotiations are still ongoing. He believes that tensions between the U.S. and Iran cannot be resolved overnight and that the negotiation process requires patience. At the very least, the ceasefire agreement remains in place, which is a positive sign.

While crude oil entered a new rally, gold fell below $4,600 during the day, dropping more than 2%, while silver tumbled over 4%.

Goldman Sachs recently raised its fourth-quarter price forecasts for Brent crude to $90 per barrel and WTI crude to $83 per barrel, contingent on a gradual recovery of regional supply by the end of June. Citi's forecast is more aggressive, suggesting that if supply disruptions persist beyond June, Brent could test $150 per barrel, with the fourth-quarter average price expected to remain near $100 per barrel.