Oil closes higher, Brent crude crosses $108

Oil drilling rigs

Oil closed positive today, April 27, with benchmark Brent crude closing at its highest level since April 7. The upward momentum followed the stalled negotiations between the US and Iran, and the continued double blockade of the Strait of Hormuz.

Brent crude futures for June delivery rose 2.75%, or $2.90, to $108.23 a barrel. WTI crude oil futures for June delivery rose 2.10%, or $1.97, to $96.37 a barrel.

Diplomatic stalemate has prevailed after US President Donald Trump cancelled his envoys' trip to Pakistan last weekend, and stressed that Tehran must take the initiative to contact him to request an agreement.

Signs of a possible breakthrough emerged after the White House confirmed that the president had received a new Iranian proposal that was discussed with his top national security advisers this morning, but the foreign minister described the Iranian demands as unacceptable.

Amid this geopolitical uncertainty, Goldman Sachs analysts raised their year-end oil price forecast to $90 from $80 a barrel for Brent crude, warning of price spikes if global oil inventories decline.