Oil Prices Slide as Diplomatic Progress Meets Ongoing Tensions
Crude oil prices are on track for their first weekly decline in three weeks as traders weigh diplomatic progress and potential supply additions against ongoing tensions. Brent crude futures settled at $89.10 a barrel, down 0.67%, while West Texas Intermediate fell 0.77% to close at $82.89.
The selling pressure comes despite a Thursday rebound sparked by a Wall Street Journal report that the Trump administration has no interest in reviving the June memorandum of understanding with Iran. Tehran has insisted Washington honor the earlier accord before new negotiations can begin.
Iran and Oman have reached an understanding on dividing the Strait of Hormuz's waters, which could lead to increased oil flows. However, analysts caution that meaningful supply additions from Venezuela will take considerable time due to the country's deteriorated oil production infrastructure.