Recap: The oil market ended higher after it retraced some of its previous losses amid a rebound in the equities market and the postponement of U.S.-Iran talks offset any concerns over the U.S. economy and the possibility of increased OPEC+ output. The crude market continued its downward trend in overnight trading and posted a low of $56.39 early in the session in follow through selling seen on Wednesday. However, the market bounced off its low and retraced its losses as the equities market rallied on strong tech earnings from Meta and Microsoft. The market was also supported by the news that the fourth round of nuclear talks between the U.S. and Iran, previously scheduled for Saturday, were postponed. Also, the possibility of additional sanctions on Russian crude lifted prices after U.S. Senator Lindsey Graham said he has “broad support” for a bill that would enact new sanctions on Russia and tariffs on countries that buy its oil if Russia does not engage in serious negotiations to end the war in Ukraine. The market’s gains further accelerated when President Trump said any country that buys any amount of oil or petrochemicals from Iran will be subject to secondary sanctions immediately. The market rallied to a high of $59.50 ahead of the close. The June WTI contract settled up $1.03 at $59.24 and the July Brent contract settled up $1.07 at $62.13. The product markets ended the session higher, with the heating oil market settling up 1.02 cents at $2.0120 and the RB market settling up 3.15 cents at $2.0492.
Technical Analysis: The crude market on Friday will likely remain supported amid the bullish news regarding possible new sanctions on Russia’s and Iran’s oil exports. The market will also await for further news regarding the U.S.-Iran talks and the possible acceleration of an increase in OPEC+’s output. The market will also look for further news regarding the Trump administration’s tariff policy amid reports that the U.S. has approached China seeking tariff talks. The oil market is seen finding support at its low of $56.39, $54.67 and $51.64. Resistance is seen at its high of $59.50, $60.15, $60.43, $62.07, $63.92 and $64.87.
Fundamental News: U.S. President Donald Trump said all purchases of Iranian oil and petrochemical products must stop and any country or person buying any form the country would be immediately subject to secondary sanctions.
Earlier, Oman’s foreign minister posted on X today that a new round of talks between the United States and Iran scheduled for Saturday will be delayed due to “logistical reasons” and “new dates will be announced when mutually agreed.” U.S. officials though reportedly have said the U.S. never agreed to join the latest round of talks this weekend but that talks could still be held in the near future. Meanwhile Iranian news media was reporting Thursday the talks were being rescheduled at the request of Oman, which is hosting the talks.
On Wednesday, U.S. Defense Secretary Pete Hegseth warned Iran that it will face consequences for supporting the Houthis, even as the United States has relaunched talks with Iran over its nuclear program.
A social media account affiliated with Chinese state media said the United States has approached China seeking talks over President Donald Trump’s 145% tariffs.
The U.S House of Representatives voted Thursday to bar California’s landmark plan to end the sale of gasoline-only vehicles by 2035 that has been adopted by 11 other states. The House backed legislation to repeal a waiver granted by the U.S. Environmental Protection Agency under former President Joe Biden in December, allowing California to mandate at least 80% electric vehicles by 2035. The Senate now has until mid-May to vote on the California waivers.
Early Market Call – as of 8:20 AM EDT
WTI – Jun $59.02, up 4 cents
RBOB – June $2.0335, down 93 points
HO – May $2.0034, down 40 points
