Oil Prices Plummet Amid Profit-Taking, Geopolitical Tensions Persist

WTI oil prices dropped by over 4% on Friday to around $96.00 per barrel, marking a significant decline from earlier in the week.

The fall was largely attributed to profit-taking, as investors reassessed their positions following WTI's strong advance in recent days.

However, geopolitical tensions in the Middle East continued to exert upward pressure on prices, with US President Donald Trump stating that he was not seeking a deal with Iran and suggesting that oil prices could remain elevated until after the US midterm elections in November.

The Energy Information Administration (EIA) reported a smaller-than-expected decline in US crude inventories, which added to the downward pressure on WTI prices. Nevertheless, WTI remains significantly higher for the week, driven by increased geopolitical risk premium linked to tensions with Iran and disruptions in key shipping routes such as the Strait of Hormuz.