Quick overview

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Crude Oil was bearish before the much-awaited negotiations between Iran and the US, which will determine the course of their precarious truce.

 

West Texas Intermediate dropped 1.3 percent to settle below $97 per barrel with futures down roughly 13.4 percent this week—the largest decline in six years.

Brent oil finished the day lower at about $95. Scrude markets have been incredibly volatile since the war started in late February,  and prices are still more than 30% higher than they were before the conflict.

The focus now shifts to the sustainability of the ceasefire announced this week and the possibility of a long-lasting peace that would rekindle energy flows across the Strait of Hormuz. Only ships with ties to Tehran are currently able to pass through the important waterway.

Additionally, the oil market is waiting to see if the US will grant a sanctions waiver that permits the purchase of Russian crude that has already been loaded onto tankers. According to people familiar with the situation, some Asian nations, where fuel shortages have surfaced recently, are pressuring the US Treasury Department to extend the measure. Shortly after midnight Washington time, the current waiver expires

US Vice President JD Vance is anticipated to chair talks with Iranian officials in Islamabad. This week, Iranian attacks have persisted in damaging the region’s energy infrastructure and further restricting supply. Late on Thursday, Saudi Arabia announced that the flow of oil through an East-West pipeline that the kingdom has been using to export via the Red Sea had decreased due to strikes. Inventory has started to be tapped by nations that depend significantly on Middle Eastern crude. According to Prime Minister Sanae Takaichi, Japan will release roughly 20 days’ worth of oil from its reserves in May. The gr was given to Chinese state refiners.