Crude oil prices trade near $95/bbl as focus shifts to US-Iran ceasefire deadline; COMEX gold up 0.16%

Crude oil prices in the global market were trading near the $95 per barrel region during the early market hours on Tuesday, April 21, as investors were focusing their attention towards the US-Iran ceasefire deadline which is set to expire on Wednesday.

The uncertainty related to an extension of the ceasefire deal remains, as in a telephonic interview with Bloomberg, US President Donald Trump said that it is “highly unlikely” that the United States will extend the ceasefire agreement with Iran.

Global benchmark, Brent crude oil prices surged to hit an intraday high of ₹97.50 per bbl during the trading session on Monday, April 20, after the commodity opened for trading around the $96 per bbl region.

The West Texas Intermediate (WTI) crude oil prices also showed that the key energy source rates remained elevated in the market, with prices rising to $88.84 per bbl on Monday, after opening around $88.15 per bbl.

Crude oil prices today

As of 7:20 am (IST), the Brent crude oil prices were trading 0.76% higher at $94.99 per bbl on Tuesday, compared to $94.27 per bbl at the previous market close, according to Investing.com data.

However, the US-based WTI crude oil prices were down 1.03%, trading at $86.51 per bbl as of 7:21 am (IST) on April 21, compared to $87.42 per bbl at the previous market close.

What’s driving oil prices today?

Oil prices remained elevated on Tuesday’s market session as investors were cautious ahead of the US-Iran ceasefire agreement expiry, which is scheduled for Wednesday, April 22, since it was imposed on the evening of April 7.

“I’m not going to be rushed into making a bad deal. We’ve got all the time in the world,” said Trump in his interview. He also said that if the United States and Iran do not come up with a potential peace deal, then immediate attacks can be expected in West Asia.

On the peace deal front, the latest media reports suggest that so far, Iran and the United States have not held a second round of negotiations. However, President Trump, in a post early on Monday, mentioned that the US officials will soon be in contact with the Iranian delegates for the second round of peace deal talks.

Trump also said that due to this conflict, 'hundreds of ships' are purchasing oil from United States.

"The Iranian leadership has forced hundreds of ships toward the United States, mostly Texas, Louisiana, and Alaska, to get their Oil," said Trump in a separate post on Truth Social.

According to a CNN report, Iranian foreign ministry spokesperson Esmaeil Baqaei, in a press conference on Monday, said that Iran has no plans for the next round of negotiations.

“As of now, we have no plans for the next round of negotiations,” he said. “We don’t believe in deadlines or ultimatums to secure Iran’s national interests.”

Gold prices today

The New York Mercantile Exchange-based COMEX gold prices were trading 0.16% higher at around $4,836 per ounce as of 9:55 pm (EDT) on Monday, April 20, compared to $4,828 per ounce at the previous commodity market close, as per the official data.

The gold prices were trading marginally higher on Tuesday’s market in India time as the global benchmark currency, the US dollar, remained under pressure amid the dynamic geopolitical developments on the West Asia front.

Data collected from the Bloomberg US dollar spot index (DYX) showed that the greenback was trading flat at $98.110 as of 9:59 pm (EDT) on Monday, compared to the previous currency market close levels.

Traders are likely to fuel the demand for the precious metals if the dollar witnesses further pressure, dropping in the current market, with the easing tensions in West Asia. All eyes are now on a potential extension of the ceasefire deal or a peace agreement between the United States and Iran.