CRUDE WRAP: WTI (M6) SETTLES USD 2.83 LOWER AT 84.88/BBL; BRENT (Q6) SETTLES USD 3.05 LOWER AT 87.33/BBL

The crude complex was lower on Friday, as the US and Iran appear closer than ever before to reaching a peace deal. Highlighting this, both sides, the US and Iran, as well as Pakistan, have made remarks regarding the close proximity of an agreement, with sources even noting Pakistan's Foreign Minister will leave tonight for Geneva, a destination touted for the signing, albeit with nowhere confirmed yet. Further, Pakistan PM Sharif remarked he can confirm that a final, agreed-upon text of the peace deal has been reached and Pakistan is now working closely with both sides to finalise the next steps. Despite the very positive developments and being in the final stages, some details still need to be ironed out, as both sides came out today following the initial 14-point MoU, which was leaked. Trump said the terms that Iran leaked out to the fake news have nothing to do with the terms that were agreed to, in writing, while the Iranian Foreign Minister added the Islamabad MoU has never been closer and pending its finalisation, the media should refrain from entering speculation about its content, details to be shared in due course. In more recent trade, US senior administration official added Iran deal accomplishes core US objectives, reopens the Strait of Hormuz, guarantees long-term peace in the region, includes an inspection regime, and allows the US to get enriched material under the Iran deal. As such, into the weekend, participants await any further details or signing of the Islamabad MoU.

In addition, Reuters source reports noted the UAE is to unlock billions of dollars for Iran, with the sources adding at least USD 10bln to be unlocked under the deal, with the first USD 3bln tranche already sent.

For the record, the weekly Baker Hughes rig count saw oil rise 2 to 433, nat gas fall 3 to 121, leaving the total down 1 at 562.