Crude oil prices extended yesterday’s spike in early trading but showed a notable move to the downside over the course of the session.
After surging as high as $116.64 a barrel, crude oil for May delivery tumbled $2.59 or 2.3 percent to $112.34 a barrel.
The price of crude oil soared $5.66 or 5.2 percent to $114.93 a barrel on Wednesday amid reports showing an unexpected decrease in weekly U.S. crude inventories.
The pullback by oil prices came after Iran hinted that it may be close to getting a new nuclear deal with the U.S. via negotiations in Europe.
White House national security adviser Jake Sullivan said on Wednesday the United States and its allies have made progress in Iran nuclear talks, but issues remain, and it is unclear if they will be resolved.
The allies are trying to use diplomacy to put Iran’s nuclear program “back in a box,” Sullivan told reporters aboard Air Force One.
Traders also kept an eye on any developments out of Europe, where President Joe Biden is meeting with U.S. allies in Brussels.
The Biden administration has imposed additional sanctions against Russia over its invasion of Ukraine, targeting dozens of Russian defense companies, 328 members of the Russian State Duma, and the head of Russia’s largest financial institution.
With Europe depending heavily on Russian gas for heating and power generation, the European Union is split on whether to sanction Russia’s energy sector.