Crude oil prices fell more than 2% on Friday as traders felt the chances of renewed fighting between the U.S. and Iran were less likely as hopes for peace increased.
The contracts rose earlier in the week after fighting flared in the Middle East as U.S.-Iran war peace talks dragged on while traffic in the Strait of Hormuz, where a fifth of the world’s oil passes, remained limited.
Brent crude dropped $1.94 or 2.04% to settle at $93.09 a barrel. In the previous session, Brent fell 2.84%.
West Texas Intermediate crude fell $2.50 or 2.69% and closed at $90.54 a barrel on the New York Mercantile Exchange. The decline followed a 3.1% loss on Thursday.
The decline by both benchmarks followed the rejection by Hezbollah leader Naim Qassem to a U.S. brokered agreement between Israel and Lebanon to halt the fighting. Reuters reported Iranian oil exports have fallen to their lowest level in six years mainly due to the U.S. naval blockade, according to shipping data, although weak demand in China has depressed prices for the oil.
Natural gas prices also declined in Friday’s trading, settling at $3.219 MMBtu with a fall of $0.115 or 3.45%.
Oklahoma energy stocks had a weak Friday with all but two of our reported firms recording losses for the day. USA Rare Earth led all with a 5% drop. Two firms that recorded gains were ONE Gas and OGE Energy Corp.