Brent Crude Nears $100 as U.S.-Iran Tensions Rise

Brent crude oil prices are anticipated to rise towards $100 per barrel as the deadline for a ceasefire looms amidst ongoing U.S.-Iran negotiations. The oil market has experienced volatility, particularly in March and April, influenced by Iran's closure of the Strait of Hormuz.

Donald Trump, through a post on Truth Social, has warned that the ceasefire raises the risk of renewed conflict, further impacting market sentiments. Additionally, the global liquefied natural gas (LNG) prices have seen a decline over the past four weeks, with the Northeast Asia benchmark JKM marker dipping to $15 per MMBtu on Tuesday, marking the lowest level since the U.S.-Iran conflict escalated in late February to early March.

The primary driver behind the weak LNG prices is a significant drop in demand, with total Asian imports expected to fall to 1.92 million tons, the lowest monthly figure since April 2020. This decline is attributed to a 13 MTPA loss in Qatari liquefaction capacity over the next 1-2 years, compounded by Iran's drone attacks affecting LNG buyers.