DTN Oil Update
Oil Ends With Large Weekly Loss Ahead of Iran Talks
SECAUCUS, N.J. (DTN) -- Crude futures ended Friday's trading with the largest weekly drop in 10 months, ahead of U.S.-Iran talks that could drive energy prices lower if a peace deal is struck after more than a month of fighting that upended Middle East oil supplies.
NYMEX May WTI crude settled the day down $1.30, or 1.3%, at $96.57 barrel (bbl). For the week, it tumbled 13%, the most for a front-month contract in U.S. crude since the week ended June 27, 2025.
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ICE Brent for June closed down $0.72, or 0.8%, at $95.20. ET. On a weekly basis, the global crude benchmark was off 12%.
Among refined products, NYMEX ULSD for May closed down $0.1754, or 4.5 %, at $ 3.7616 gallon. For the week, the front-month distillates contract declined by 14%.
Gasoline was the only major component of the NYMEX complex to post a rise on the day. RBOB May futures settled the session up $0.0366, or 1%, at $ 3.0373 gallon. For the week though, the front-month gasoline contract lost 8%.
On the war front, U.S. Vice President J.D. Vance will lead a White House delegation to talks with Iranian negotiators in the Pakistani capital of Islamabad this weekend.
Energy markets witnessed volatile trading since a ceasefire Tuesday (4/7) brought to a halt five weeks of U.S.-Israel bombings of Iran, which Tehran reciprocated with strikes aimed at the oil and gas facilities of its neighbors deemed to be allies of its two enemies.
Prior to this week, oil prices mostly rose through March, with WTI gaining more than 50% last month and Brent over 60% as Iran blockaded the Strait of Hormuz, which serves as an artery to Middle East oil shipments.
The strait, a transit point for 20 million bpd of global petroleum supplies, has remained largely closed since Tuesday's ceasefire, with only one tanker reportedly passing the waterway on Friday compared with the daily pre-war traffic of 140 tankers. Iran has stated that it will officially impose a toll on ships using the Hormuz to pay for the rebuilding of its country from the war, with reports suggesting a planned levy of $1 in cryptocurrency or Chinese yuan for each barrel that traverses the strait. The U.S. says it opposes that plan.