West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts some dip-buyers during the Asian session on Tuesday, reversing a part of the previous day's heavy losses to the $94.30 area, or an over two-week low.
Commerzbank economists Dr. Jörg Krämer, Dr. Vincent Stamer and colleagues argue that Middle East crude exports have nearly returned to pre-war levels thanks to dark transits through the Strait of Hormuz. They expect high risk premia to fade, with Oil futures falling from about USD 104 toward USD 85 by year-end. Diesel and European natural gas prices should ease more slowly, keeping Euro area inflation elevated until mid-2027.
US special envoy Jared Kushner said that a deal to allow Russian diesel exports is part of a bid to draw Russia back to negotiations after the failure of previous efforts to launch sustained talks to end the war, Reuters reported on Monday.