(RTTNews) – Rebounding from the previous session’s slump, crude oil moved higher on Friday as traders focused on the progress of U.S.-Iran talks before making big moves, while the U.S. issued an advisory asking its citizens to depart from Iran stoked concerns of war.
WTI Crude Oil for March delivery was last seen trading up by $0.20 (or 0.32%) at $63.49 per barrel.
As the U.S.-Iran conflict brews, with the U.S. alternately shifting stances, traders preferred to wait-and-watch before placing firm bets.
After ordering an armada of U.S. forces to close in on Iran, U.S. President Donald Trump threatened Iran to negotiate with the U.S. over its nuclear programs or encounter heavy strikes.
Though Iran previously dismissed the threats and announced its readiness to face any U.S. strikes, it backed down later and agreed to have only direct talks with no mediator involved.
Meanwhile, a U.S. aircraft carrier in the Arabian Sea shot down an “aggressively” approaching Iranian drone.
Trump stated in an interview with NBC News that Iran’s Supreme Leader Ayatollah Ali Khamenei must be worried but did not elaborate on what he meant.
The U.S. issued an advisory to its citizens in Iran asking them to exit the nation immediately through any means without awaiting U.S. assistance.
On the diplomatic route, with the Iranian side headed by its Foreign Minister Abbas Araghchi and the U.S. represented by Trump’s special envoy Steve Witkoff and Jared Kushner, the first-day talks concluded today with both sides refraining from divulging any specific details.
Iran is the fourth largest oil producer in the OPEC alliance and controls the Strait of Hormuz, which is a critical chokepoint for global oil transit.
A direct U.S.-Iran military confrontation could disrupt Iran’s oil production and any Iranian retaliation could adversely affect the supply route.
Yesterday, the second round of negotiations between Russia and Ukraine to discuss the U.S.-authored peace proposal ended in a stalemate. The only substantial outcome from the talks held in Abu Dhabi, United Arab Emirates, was an agreement by both nations to exchange 314 prisoners of war.
However, the U.S., Russia, and Ukraine positively asserted that the talks were moving progressively, with more discussions to follow.
The U.S. and India recently signed a bilateral trade deal, according to which India will stop buying oil from Russia and purchase from the U.S.
As a result, reportedly around 12 million barrels of Russian crude oil are en route to China in East Asian waters.
Yesterday’s U.S. Labor Department’s data on initial jobless claims revealed a rise by 22,000 from the previous week to 231,000 on the last week of January, above market expectations of 212,000.
Continuing jobless claims increased to 1,844,000 for the week ending January 24.
Weaker-than-expected U.S. labor market data spiced up rate cut expectations.
Today, the University of Michigan’s consumer sentiment data revealed that the index increased by 0.9 to 57.3 for February, versus the anticipated decline to 55.0, marking the third consecutive monthly increase and limiting the losses in the U.S. dollar.
Five-year inflation expectations increased to 3.40% in February from 3.30% in January.
The U.S. dollar index was last seen trading at 97.64, down by 0.18 points (or 0.18%) today.
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