Ice Brent futures fell in early Asian trading, after the US and Iran signed a memorandum of understanding (MoU) to end hostilities ahead of schedule.
The Ice front-month August Brent contract was at $78.17/bl at 04:00 GMT, lower by $1.38/bl from its settlement on 17 June when it ended 59¢/bl higher.
The Nymex front-month July crude contract was at $75.33/bl, down by $1.46/bl from its settlement on 17 June when it ended 74¢/bl higher.
The US and Iran have confirmed that the leaders of the two countries have remotely signed the MoU to end the more than three-month long conflict that has caused global supply shocks and price volatility in energy and commodity markets.
The US' White House in a social media post confirmed that US president Donald Trump signed the MoU in Versailles, France. Iranian president Masoud Pezeshkian has also signed the text, according to Iran's semi-official news agency Tasnim, which is affiliated with the country's Islamic Revolutionary Guard Corps (IRGC).
Under the deal, Iran is committing to ensure that the movement of vessels from the Mideast Gulf to the Gulf of Oman and vice versa resumes to pre-war levels within 30 days, taking into consideration the need to remove technical obstacles and neutralise mines.
The US will lift all types of sanctions on Iran, on a schedule that will be negotiated as part of the final agreement. This is subject to Iran meeting its obligations with regard to its nuclear programme.
The US Treasury will also issue waivers allowing exports of Iranian crude oil, petrochemical products and their derivatives, and all related services including banking, insurance and transportation, according to the draft agreement.
Iranian crude exports appeared to be resuming for the first time in two months, even before the agreement was signed. The three tankers that transited the strait of Hormuz on 16 June appear to be from the National Iranian Tanker Company, according to vessel tracking data from TankerTrackers.com and Windward, with a combined 5mn bl of capacity.
Key Mideast Gulf medium sour benchmark Dubai crude slipped into a contango market structure on 17 June, with prompt prices below forward contracts. Dubai prices eased on expectations of a near-term supply glut given the US-Iran peace deal.
Ice Brent futures fell in early Asian trading, after the US and Iran signed a memorandum of understanding (MoU) to end hostilities ahead of schedule.
The Ice front-month August Brent contract was at $78.17/bl at 04:00 GMT, lower by $1.38/bl from its settlement on 17 June when it ended 59¢/bl higher.
The Nymex front-month July crude contract was at $75.33/bl, down by $1.46/bl from its settlement on 17 June when it ended 74¢/bl higher.
The US and Iran have confirmed that the leaders of the two countries have remotely signed the MoU to end the more than three-month long conflict that has caused global supply shocks and price volatility in energy and commodity markets.
The US' White House in a social media post confirmed that US president Donald Trump signed the MoU in Versailles, France. Iranian president Masoud Pezeshkian has also signed the text, according to Iran's semi-official news agency Tasnim, which is affiliated with the country's Islamic Revolutionary Guard Corps (IRGC).
Under the deal, Iran is committing to ensure that the movement of vessels from the Mideast Gulf to the Gulf of Oman and vice versa resumes to pre-war levels within 30 days, taking into consideration the need to remove technical obstacles and neutralise mines.
The US will lift all types of sanctions on Iran, on a schedule that will be negotiated as part of the final agreement. This is subject to Iran meeting its obligations with regard to its nuclear programme.
The US Treasury will also issue waivers allowing exports of Iranian crude oil, petrochemical products and their derivatives, and all related services including banking, insurance and transportation, according to the draft agreement.
Iranian crude exports appeared to be resuming for the first time in two months, even before the agreement was signed. The three tankers that transited the strait of Hormuz on 16 June appear to be from the National Iranian Tanker Company, according to vessel tracking data from TankerTrackers.com and Windward, with a combined 5mn bl of capacity.
Key Mideast Gulf medium sour benchmark Dubai crude slipped into a contango market structure on 17 June, with prompt prices below forward contracts. Dubai prices eased on expectations of a near-term supply glut given the US-Iran peace deal.
By YouLiang Chay