TLDR
- Crude futures posted gains Friday, with Brent hitting $72.54/barrel and WTI reaching $66.89 after US-Iran nuclear talks in Geneva ended without a deal
- Iran’s foreign minister described the talks as one of the “most serious and longest rounds of negotiations” with meaningful progress achieved
- Follow-up discussions expected to restart in under a week, likely taking place in Vienna
- Energy sector leaders Exxon, Chevron, and ConocoPhillips saw gains in premarket trading
- Traders watching Sunday’s OPEC+ meeting closely as oversupply concerns loom
Petroleum markets saw substantial gains Friday after nuclear talks between the United States and Iran wrapped up in Geneva without reaching a final agreement. Despite the lack of a concrete deal from Thursday’s meetings, officials from both nations suggested negotiations would continue moving forward.
Brent crude futures climbed to $72.54 per barrel, marking a 2.4% increase for the session. Meanwhile, West Texas Intermediate rose 2.6%, settling at $66.89 per barrel.
Abbas Araghchi, Iran’s Foreign Minister, described the Geneva meetings as among the “most serious and longest rounds of negotiations” between the two countries. He noted that “good progress” had been made during the talks.
“On some issues, understandings have come very close,” Araghchi remarked. While acknowledging remaining points of contention, he stressed that both sides are “more serious about reaching a negotiated solution” than in previous negotiating rounds.
Araghchi confirmed that additional talks would take place in the “near future – probably in less than a week.” Oman, acting as an intermediary in the negotiations, reported “significant progress” was made, with technical-level meetings scheduled for Vienna.
Oil prices have shown notable volatility throughout the past 24 hours. Traders are assessing the balance between potential diplomatic breakthrough and the risk of US military action, both of which could significantly affect global oil supplies.
Energy Stocks Climb on Oil Price Strength
Leading energy stocks rallied in tandem with climbing crude prices. Exxon shares rose 1.1% in premarket hours, Chevron climbed 0.8%, and ConocoPhillips gained 0.6%.
These price movements reflect investor sensitivity to Middle Eastern geopolitical events that could disrupt oil production or critical shipping lanes.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, noted that mixed messages from negotiators kept traders uncertain despite signs of progress. He suggested attention is now turning to Sunday’s OPEC+ production policy meeting.
OPEC+ Decision Looms Large
Concerns about a potential oil glut are weighing on markets ahead of Sunday’s OPEC+ gathering. The cartel is expected to discuss output levels, and any move to increase production could put downward pressure on crude prices.
This tension between geopolitical risk and oversupply concerns is keeping oil markets volatile. Prices remain highly reactive to new information from either the Iranian diplomatic track or the OPEC+ summit.
As of Friday morning trading, Brent crude stood at $71.36 per barrel and West Texas Intermediate traded at $65.82, pulling back slightly from intraday highs but still holding significant gains from Thursday’s close.
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