China Pushes for Peace Talks, Oil Prices Drop Over 4% on Renewed Hope

Oil prices dropped more than 4% on Friday due to hopes of renewed peace talks between the US and Iran. China reportedly initiated a push for resumed negotiations, causing Brent crude futures to settle at $96.78 a barrel, down $3.91 or 3.88%. West Texas Intermediate (WTI) futures finished at $89.31 a barrel, down $2.88 or 3.12%, on track for an 8.27% weekly rise.

Energy markets remain tight and sensitive to geopolitical events, according to John Kilduff, partner at Again Capital, who stated 'There's nothing this market loves more than hope.' Phil Flynn, senior analyst with Price Futures Group, noted that energy stocks remain pretty tight and could turn on a dime.