May WTI crude oil (CLK26) on Wednesday closed down -2.03 (-2.20%), and May RBOB gasoline (RBK26) closed down -0.1344 (-4.34%). Crude oil and gasoline prices fell sharply on Wednesday in hopes that US-Iran diplomacy can end the war in Iran. Also, the unexpected increase in weekly EIA crude inventories to a 1.75-year high was bearish for crude prices. However, crude recovered from its worst level after Iran dismissed the US peace plan in its current form.
Crude prices sank on Wednesday after the US sent a 15-point peace proposal to Iran that covers a rollback of Iran’s nuclear program, including the resumption of monitoring by the International Atomic Energy Agency, limits on missiles, and access for shipping through the Strait of Hormuz. In return, Iran would get relief from economic sanctions.
