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Oil futures: WTI falls with Iranian sanctions talks

  • Market: Crude oil, Oil products
  • 26/08/25

WTI crude futures fell today as Iran met with western countries to discuss sanctions and questions are raised about the independence of the US central bank.

October Nymex WTI fell by $1.55/bl to $63.25/bl while October Ice Brent fell by $1.58/bl to $67.22/bl. The October Brent-October WTI spread widened by 7¢/bl to $4.49/bl.

October WTI at the Magellan East Houston (MEH) terminal was discussed at a prompt $1.20-1.30/bl premium bid-ask spread to the Cushing benchmark, according to the Argus Crude Market Ticker (ACMT), around where it was valued for October on the final day of September trade. The light sweet last traded at a $1.25bl premium over Domestic Sweet (DSW).

Senior Iranian diplomats are due to meet with their counterparts from the E3 group of Germany, France and the UK on Tuesday in Geneva in a last-ditch effort to avoid triggering a process to reinstate international sanctions on Iran.

The meeting would be the third such gathering this year, and the second since the 12-day conflict between Iran and Israel in June, which brought months of active nuclear diplomacy between Tehran and the US to an abrupt halt.

Tuesday's meeting hopes to succeed where previous meetings have failed — to devise and agree upon concrete proposals to address the west's ongoing concerns over Iran's nuclear activities, particularly around the threat of Iran weaponizing its enriched uranium.

US president Donald Trump has said he will fire Federal Reserve governor Lisa Cook, according to a letter Trump posted on social media. The attempted firing raises questions about the independence of the Federal Reserve, which Trump has repeatedly demanded cut interest rates as he threatened to fire Fed chairman Jerome Powell.

In macroeconomic news, US durable goods orders fell by 2.8pc in July following a revised 9.4pc decline the prior month, according to data released today, showing softening orders. This adds to recent evidence of a slowing economy, which could have a bearing on the outlook for crude demand.

Elsewhere, UK Forties crude production is projected at almost 218,000 b/d in December, 4pc higher than November's revised projection, according to the latest forecast from Forties Pipeline System (FPS) operator Ineos. December's projected output is 1pc below December 2024 levels.

Nymex RBOB fell by 2.6¢/USG to $2.1223/USG while Nymex ultra-low sulphur diesel fell by 6.7¢/USG to $2.2805/USG.

By Brett Holmes


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