(Bloomberg) -- Oil steadied after a choppy session on Tuesday that saw traders parse conflicting headlines on efforts to end the US-Iran war.
West Texas Intermediate traded near $98 a barrel, while Brent closed below $109 on Tuesday after trading in a range of more than $6. While talks aimed at ending the conflict are continuing, reports that an agreement is close are inaccurate, according to a diplomat involved in negotiations.
An earlier unconfirmed report on Iran war negotiations had knocked oil off five-month highs, with Brent at one point falling as much as 3.3% before paring losses. Meanwhile, US President Donald Trump said he has to make a final decision about which way he wants to win, referring to the conflict.
Brent has surged almost 80% this year as widening conflicts in the Middle East and between Russia and Ukraine disrupt energy supplies, with refined products climbing even more sharply. Renewed attacks on tankers and energy infrastructure are keeping geopolitical risk elevated even as Persian Gulf flows recover to near pre-war levels.
“This conflict doesn’t feel like it’s coming to a quick conclusion,” said Dan Pickering, chief investment officer at Pickering Energy Partners. Traders “are settling in for a higher-priced environment while respecting the volatility in the near-end of the curve.”