WTI Crude Falls to $92.41 as U.S.-Iran Truce Hopes Weigh on Prices

Oil prices closed out the week on Friday with a decline in both WTI and Brent crude. The U.S. benchmark, WTI, settled at $92.41 per barrel, down $2.20 or 2.33% from Thursday's settlement of $94.61. This marks the first weekly decline for WTI since late August.

Brent crude, on the other hand, closed at $104.32 per barrel, down $2.28 or 2.14% from Thursday's settlement of $106.60. Despite the decline, Brent finished the week slightly higher than last Friday's close, underscoring its relative strength compared to WTI.

The sharp decline in oil prices on Friday was largely driven by growing expectations that a truce between the U.S. and Iran could be reached, potentially leading to the reopening of the Strait of Hormuz. However, this optimism was tempered by continued concerns about supply risks in the Middle East, including Houthi attacks on Saudi Arabia.

The physical market remains tight, with diesel supplies particularly constrained. This is likely to continue supporting crude prices even if geopolitical tensions ease. The Brent-WTI differential has also widened significantly, reaching $11.91 per barrel, highlighting the different conditions facing North American and international crude markets.