Oil Prices Slide Further as US-Iran Ceasefire Talks Weigh on Markets
Oil prices continued to decline on Friday as traders assessed the potential for a ceasefire between the United States and Iran, raising expectations about easing geopolitical risks and their impact on crude supplies.
Brent crude had surged as much as 5% during Thursday’s session before closing 3.4% higher, reaching its highest level since September 15. U.S. West Texas Intermediate (WTI) also gained around 2.7%, after falling 13% over the previous six trading sessions.
The spread between Brent and WTI widened beyond $12.60 a barrel, its widest level since May, when it surpassed $13, reflecting differences in regional supply risks, according to Reuters.
Markets are also awaiting Baker Hughes’ latest U.S. oil and gas rig count, due later Friday, for further signals on the outlook for domestic crude production.