Oil Posts Weekly Loss as Brent Falls 5% on US-Iran Deal Hopes
Updated
Updated · CNBC · May 22
Oil Posts Weekly Loss as Brent Falls 5% on US-Iran Deal Hopes
3 articles · Updated · CNBC · May 22
Summary
Brent ended at $103.54 a barrel and WTI at $96.60, but both were headed for weekly losses as traders priced in signs that Washington and Tehran may be nearing a deal.
Trump's decision Monday to halt imminent strikes on Iran for more negotiations, followed by Rubio's comment that "good signs" are emerging, drove the latest retreat in crude.
The optimism is tempered by unresolved disputes over Iran's enriched uranium stockpile and any move by Tehran to permanently control shipping through the Strait of Hormuz.
About 20% of global oil and LNG normally passes through Hormuz, where traffic has nearly stopped since the war began on Feb. 28, keeping supply fears alive despite the price drop.
The IEA warned summer demand could push markets into a "red zone" as stocks fall, while MUFG said full Middle East supply normalization may not come until 2027.