India
oi-Prakash KL
Global oil prices witnessed sharp swings on Friday, reflecting the market’s uncertainty over supply disruptions and the possibility of renewed diplomatic engagement between the United States and Iran. While intra-day trading remained volatile, benchmark crude prices managed to secure modest gains for the week, underlining persistent supply-side concerns.
Brent crude futures settled at $105.33 per barrel, inching up by 26 cents or 0.3%. In contrast, U.S. West Texas Intermediate (WTI) crude futures ended at $94.40 per barrel, slipping $1.45 or 1.5% during the session. Despite the mixed closing, both benchmarks posted strong weekly gains, with Brent surging around 16% and WTI climbing nearly 13%.
Oil futures experienced volatile trading Friday, with Brent settling at $105.33 and WTI at $94.40, but both benchmarks registered substantial weekly gains due to persistent supply concerns outweighing potential easing from US-Iran diplomacy.
The fluctuations come as traders continue to balance geopolitical risks against potential diplomatic breakthroughs. Ongoing supply disruptions-driven by global tensions and production uncertainties-have kept prices elevated. However, reports of possible peace talks between Washington and Tehran have raised expectations that Iranian crude could return to global markets, easing supply tightness and capping further price spikes.
Beyond the headline benchmarks, the broader energy market showed a mixed trend. Murban crude declined by over 2% to $103.59, while the OPEC basket rose more than 3% to $106.28, signalling strength across key export blends. Similarly, the Oman crude benchmark recorded a notable jump of nearly 5%, reflecting robust demand in Asian markets.
Natural gas prices, however, moved in the opposite direction. U.S. natural gas futures dropped 3.48% to $2.523, indicating softer demand or improved supply conditions. Meanwhile, refined products such as gasoline remained largely flat, while heating oil prices declined by over 2.5%.
Regional crude variants presented a stronger picture overall. The Indian basket rose to $108.55, while Russia’s Urals crude and Canada’s Western Canadian Select posted gains of over 3%. Alaska North Slope (ANS) crude stood out with a sharp rise of 7.4%, reflecting tighter regional supply dynamics.
Other energy benchmarks also recorded modest gains. LNG prices in the Japan-Korea market edged up by 1.64%, while Europe’s Dutch TTF natural gas benchmark rose by just over 2%, suggesting steady demand across key consuming regions.
In summary, the oil market remains caught between opposing forces-tight supply conditions supporting prices and diplomatic developments potentially easing them. For now, the strong weekly gains indicate that supply concerns continue to dominate sentiment, even as traders keep a close watch on geopolitical negotiations that could reshape the global energy landscape in the coming weeks.
