Oil Extends Losses After US, Qatar Signal Progress on Iran Draft Deal

Brent crude prices have declined to around $80 per barrel due to renewed optimism surrounding a possible US-Iran draft agreement, calming geopolitical concerns. Despite this progress, President Trump has criticized US refiners for high fuel profits. Big oil companies like ExxonMobil and Chevron have reported robust earnings, with ExxonMobil's oil production affected by closures in the Middle East and Chevron struggling with closures in Kazakhstan.

The refining margins for both companies have been strong since the war began in March. The 3-2-1 spread, consisting of 2 barrels of gasoline, 1 barrel of distillates, and 3 barrels of crude, has doubled to $60 per barrel since early March. Meanwhile, the average US gasoline pump price has dropped to $4.08 per gallon. Several energy companies, including UK-based Shell and US oil major BP, have made strategic moves, such as selling assets or divesting from certain operations.

Meanwhile, Iran and Oman are reportedly mapping out a new shipping route through the Strait of Hormuz, potentially conflicting with previous reports that Iran rejected the idea.