CRUDE WRAP: WTI (M6) SETTLES USD 3.13 LOWER AT USD 101.94/BBL; BRENT (N6) SETTLES USD 2.23 LOWER AT USD 108.17/BBL
The crude complex ended the day with losses, as Tehran submitting a new proposal weighed. Prior to this, WTI and Brent hit peaks of USD 106.65/bbl and 112.45, respectively, as oil prices were elevated heading into a weekend of geopolitical risk. Following this, risk tone improved, and benchmarks fell as Axios' Ravid said Iran delivered on Thursday to the US through the Pakistani mediators its response to the latest US amendments on the agreement to end the war. However, sources "added nuclear negotiations will not succeed under these circumstances, and the focus will likely be on ending the war." Nonetheless, Pakistani officials also said Iran's latest response to the US terms for a peace deal was delivered to the US officials, and crude continued to slip. In the following reports, Tehran could see talks restarting if the US lifts its blockade of Iranian ports and Iran fully reopens the Strait of Hormuz, but the source added that Iran remains deeply distrustful of the US. Further still, Trump was on the wires and said he is not satisfied with the latest proposal from Iran, the Iran negotiations are not getting there right now, and said they are asking for things he cannot agree with. Into the weekend, focus will be on any progress or escalation regarding US/Iran. For the record, the weekly Baker Hughes rig count saw oil fall 1 to 408, natgas rise 1 to 130, leaving the total up 3 to 547.
The notable decline in both WTI and Brent crude prices reflects a bearish sentiment in response to Iran's new proposal regarding nuclear negotiations, which has raised concerns over the stability of oil supply amidst geopolitical uncertainty. While initial peaks indicated bullish market expectations, deteriorating risk sentiment and skepticism about the negotiations suggest that traders should brace for further volatility in oil prices as developments unfold this weekend.