Oil Records 5.5% Weekly Loss

Oil prices fell at settlement, ending a two-week winning streak, after a report indicated that U.S. President Donald Trump is uninterested in returning to the terms of the previous agreement with Iran. Brent crude futures dropped 39 cents, or 0.43%, to settle at $89.31 per barrel. U.S. West Texas Intermediate (WTI) crude futures fell 13 cents, or 0.16%, to settle at $83.40 per barrel. Both benchmarks closed the week lower, with Brent down 5.5% and WTI down 5.2%.

Janif Shah, an analyst at Rystad Energy, said, “The market was surprised by the increase in flows, the shipping corridor between Iran and Oman, and U.S. statements on mine clearance.” He added, “The weekly decline is likely due to the volume of shipments available to exit the strait and the rapid pace of increased flows. This will allow Asian refineries to draw down inventories and increase consumption.”

The Wall Street Journal reported that sources familiar with the matter said the Trump administration has repeatedly informed intermediaries that it is uninterested in reviving the memorandum of understanding signed in June, complicating diplomatic efforts to resume talks. Earlier on Thursday, Washington stated that it was not holding talks with Iran, despite diplomatic efforts by other countries to bridge the positions of the two sides.