FX.co ★ Crude Oil Rebounds on Choppy Session

On Friday, WTI crude futures experienced volatile trading. Initially, prices dipped due to easing concerns about the Middle East, but later rebounded by over 0.5%, approaching $63.7 per barrel. Despite this recovery, crude prices were still on track for their first weekly decline in seven weeks. Talks between the United States and Iran in Oman, described by Iranian officials as having made a promising start, aimed at continuing negotiations, alleviated fears of immediate supply disruptions from a region critical to approximately one-third of the world's crude output. Earlier gains mirrored ongoing caution as the U.S. sought to expand discussions beyond just nuclear issues, heightened previously by evacuation advisories that increased sensitivity to potential escalation risks. However, as diplomatic indications improved, the risk premium diminished, reinforcing the anticipation of a surplus later in the year. Additionally, Saudi Arabia's decision to lower the official selling prices for its primary crude grade to Asia to the lowest level since late 2020 underscored the availability of ample supply, although the milder-than-expected price cut reflected confidence in demand.