India
oi-Prakash KL
Crude oil prices held steady in early Asian trading on Tuesday, 28 April, as markets weighed tentative diplomatic signals from Washington over a possible resolution to tensions involving Iran.
Reports suggest the United States is considering a fresh proposal from Tehran aimed at easing the ongoing conflict in West Asia. However, despite these developments, analysts remain cautious and have revised their oil price forecasts upwards, citing the risk of prolonged supply disruptions.
Crude oil prices held steady on April 28, with Brent at $108.62 and WTI at $96.92, as markets weighed diplomatic signals regarding Iran against ongoing supply disruptions in the Strait of Hormuz, leading analysts to revise price forecasts upwards due to potential continued bottlenecks.
At the time of writing, Brent crude was trading at $108.62 per barrel, reflecting a modest increase of 0.36 per cent. US benchmark West Texas Intermediate (WTI) crude rose 0.54 per cent to $96.92 a barrel, while Murban crude gained 0.58 per cent to reach $104.19.
The broader energy complex showed mixed movement, with natural gas prices slipping 1.76 per cent to $2.505, even as gasoline and ethanol posted marginal gains.
Market participants continue to track developments around the Strait of Hormuz, a vital artery for global energy supplies. Despite a ceasefire largely holding since early April, a dual blockade enforced by both Iran and the United States has drastically curtailed shipping activity through the strait.
Typically responsible for transporting nearly a fifth of the world’s oil and liquefied natural gas (LNG), the passage has seen traffic fall to near zero in recent weeks.
This sharp decline in transit has significantly disrupted the flow of crude and refined fuels, tightening global supply and lending upward pressure to prices. The resulting imbalance has raised concerns among economists about a potential inflationary ripple effect, particularly for import-dependent economies already grappling with elevated energy costs.
Elsewhere, regional crude benchmarks reflected similar trends. The OPEC basket price stood at $108.33, up 1.93 per cent, while the Indian basket rose 1.21 per cent to $109.86. Meanwhile, US crude grades such as WTI Midland and Mars recorded stronger gains of over 2 per cent and 1 per cent respectively, signalling firm demand amid constrained supply.
| Futures & Indexes | Last | Change | |
|---|---|---|---|
| WTI Crude | 97.27 | +0.90 | |
| Brent Crude | 109.07 | +0.84 | |
| Murban Crude | 104.19 | +0.60 | |
| Natural Gas | 2.505 | -0.045 | |
| Gasoline | 3.503 | +0.012 | |
| Heating Oil | 3.975 | +0.000 | |
| WTI Midland | 100.74 | +2.14 | |
| Mars | 119.06 | +1.22 | |
| Opec Basket | 108.33 | +2.05 | |
| DME Oman | 105.32 | -1.76 | |
| Mexican Basket | 97.53 | +0.07 | |
| Indian Basket | 109.86 | +1.31 | |
| Urals | 105.99 | -1.50 | |
| Western Canadian Select | 82.05 | +0.00 | |
| AECO C natural gas | 1.020 | +0.060 | |
| Dubai | 105.99 | -0.06 | |
| Brent Weighted Average | 105.37 | +1.48 | |
| Louisiana Light | 100.72 | +4.51 | |
| Domestic Swt. @ Cushing | 90.88 | -1.45 | |
| Giddings | 84.63 | -1.45 | |
| ANS West Coast | 112.55 | +3.50 | |
| Gulf Coast HSFO | 82.73 | -0.01 | |
| Ethanol | 1.995 | +0.033 | |
| Dutch TTF Natural Gas | 15.41 | +0.12 | |
| LNG Japan/Korea Marker | 16.55 | +0.16 |
In contrast, some international grades showed declines. DME Oman crude slipped 1.64 per cent, while Russia’s Urals blend fell 1.40 per cent. Natural gas markets remained volatile, with European benchmark Dutch TTF gas inching up 0.76 per cent, and the LNG Japan/Korea Marker rising nearly 1 per cent.
Analysts warn that unless there is a swift and credible breakthrough in negotiations, supply bottlenecks could persist, keeping oil prices elevated in the near term. Even if diplomatic progress is made, the resumption of normal shipping through the Strait of Hormuz may take time, prolonging market uncertainty.
For now, traders appear to be balancing cautious optimism over diplomacy with the stark reality of disrupted supply chains. The result is a market that remains on edge, with prices likely to stay sensitive to both geopolitical headlines and logistical developments in one of the world’s most critical energy corridors.
