Oil Prices End Volatile Session Mixed, See Sharp Weekly Gain Amid Supply Concerns

Oil Prices Whipsawed in Volatile Trade on Friday

Oil prices experienced a volatile trading session on Friday, influenced by supply disruptions and the potential restart of peace talks between the U.S. and Iran. Despite the uncertainty, prices remained higher for the week.

Brent crude futures settled at $105.33 a barrel, a 26-cent increase, or approximately 0.3%. U.S. West Texas Intermediate futures, on the other hand, settled at $94.40 a barrel, a decline of $1.45, or 1.5%. For the week, Brent gained about 16% and WTI rose nearly 13%.

The price fluctuations were largely driven by the conflicting reports on the potential resumption of peace talks between the U.S. and Iran. Early in the session, prices rose 2% due to fears of renewed military escalation in the region, following the release of footage of commandos boarding a cargo ship in the Strait of Hormuz. However, prices fell further after reports emerged that Iranian Foreign Minister Abbas Araqchi was expected to arrive in Islamabad to discuss proposals for resuming peace talks with the U.S.

Read also: US Stocks Surge to Record Highs on Optimism Surrounding US-Iran Diplomatic Talks

Later in the session, U.S. President Donald Trump told Reuters that Iran plans to make an offer aimed at satisfying U.S. demands. The announcement helped to stabilize prices, which had given back early gains.

The Strait of Hormuz, a vital waterway that carries about a fifth of global oil output, remains effectively blocked. Only five ships, including an Iranian oil products tanker, have moved through the Strait of Hormuz in the past 24 hours, shipping data showed.

Oil consultant Jim Ritterbusch of Ritterbusch and Associates noted that an open-ended ceasefire will likely coincide with a continued conflict, favoring higher prices, especially in Brent and diesel. Haitong Futures also warned that if peace talks fail to make progress by the end of April and fighting resumes, oil prices could climb to new highs for the year.

Read also: Intel Shares Reach New All-Time High Following Strong Earnings Forecast