ING analysts Warren Patterson and Ewa Manthey say Oil traders remain focused on US-Iran negotiations, with uncertainty over a potential deal and issues such as uranium enrichment and the Strait of Hormuz toll proposal driving volatility. Despite headline-driven swings, ICE Brent settled 2.3% lower below $103/bbl. Refined product balances show tightness in gasoline and jet fuel, while Singapore stocks rose marginally.

US-Iran talks keep Brent volatile

"Markets are still searching for signs of progress in a potential deal between the US and Iran. While there are signs of optimism, uncertainty reigns. This is not the first time a deal seemed close, only for negotiations to break down."

"So, there’s a large segment of the market that will be more sceptical about the positive signals we are seeing. While Iran said that the gap between demands has narrowed, there’s still the issue of its uranium enrichment -- as well as the uranium stockpile it is sitting on."

"Uncertainty over a potential deal is reflected in oil prices, with the market being whipsawed by headlines. However, ICE Brent still managed to settle 2.3% lower yesterday and below $103/bbl, its lowest close since early May."

"The strength in the jet regrade has led refineries around the globe to increase jet fuel yields. This will help ease some of the tightness in the jet fuel market."

"In Singapore, oil product stocks also saw a marginal increase over the last week, rising by 38k barrels to 45.4m barrels. This increase was driven by residual fuel stocks, which grew by 1.42m barrels."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)