CRUDE WRAP: WTI (M6) SETTLES USD 3.56 HIGHER AT 99.93; BRENT (M6) SETTLES USD 3.03 HIGHER AT 111.26/BBL
The crude complex was firmer, as the lack of progress between US-Iran, outweighed the UAE exiting OPEC and OPEC+. On the former, overnight, CNN reported that Trump is not satisfied with the Iranian proposal, adding that he is unlikely to accept it, although the article suggested that the US and Iran are not as far apart as they seem. Following this, risk tone soured, and benchmarks saw strength on reports that Iran's foreign minister is not returning to Pakistan following his visit to Russia. As alluded to above, benchmarks saw pressure on two headlines heading into US equity cash open, with the first being UAE announcing it will quit OPEC and OPEC+, as of the 1st of May, and is to bring additional production to the market, and also as Trump said "Iran has just informed us that they are in a "State of Collapse", they want us to "Open the Hormuz Strait", as soon as possible". Thereafter, which sent WTI and Brent to US session lows, they edged higher into settlement, albeit settling well off highs as traders await private inventory metrics after-hours. For the record, WTI traded between USD 96.24-101.85/bbl and Brent USD 107.81-112.70/bbl.
Crude oil prices surged today, driven by geopolitical tensions surrounding US-Iran negotiations, where a lack of progress is conflicting with recent announcements from the UAE about exiting OPEC. This situation raised concerns about supply stability, although the actual market reaction will likely hinge on upcoming private inventory data and how traders gauge the ongoing geopolitical climate.