May WTI crude oil prices fell by 1.33% on Friday, closing at $96.03, as traders reacted to heavy liquidation ahead of peace negotiations between the US and Iran. The market initially gained ground due to a weaker dollar and ongoing disruptions in the Strait of Hormuz, a critical oil transit route. However, reports of a potential extension of a waiver allowing the sale of Russian crude oil weighed on sentiment, as did hopes for a diplomatic resolution that could restore crude supplies.

The mixed performance in oil markets reflects broader geopolitical tensions impacting supply chains. The ongoing conflict in the Middle East has forced a reduction in production from Persian Gulf nations, with Saudi Arabia recently raising prices for its oil grades amid these constraints. Meanwhile, OPEC+ plans to increase output by 206,000 bpd in May, though this may be hindered by the regional instability.

Market professionals should closely monitor the outcomes of the US-Iran negotiations and any developments regarding OPEC+ production plans, as these factors will significantly influence crude oil pricing and supply dynamics in the coming weeks.

Source: nasdaq.com