05.02.202616:07:25UTC+00Oil Snaps Two-Day Advance

West Texas Intermediate (WTI) crude oil futures experienced a decline of over 3%, settling at approximately $63 per barrel on Thursday. This drop reverted a two-day upward trend, primarily due to easing geopolitical tensions and concerns about demand. Iran's announcement of upcoming negotiations with the United States in Oman on Friday diminished the immediate threat of military conflict and potential supply disruptions from this key OPEC member. Consequently, some of the geopolitical risk premium associated with the Middle East—responsible for about a third of the world's crude supply—was alleviated. Additionally, the market faced pressure from weaker US private sector employment data, which reignited fears of an economic slowdown and potentially reduced fuel demand. Nonetheless, uncertainty lingers regarding whether Washington and Tehran can reconcile significant differences, maintaining a degree of risk premium in the market. Traders continue to keep a close eye on developments in Ukraine, following renewed Russian attacks on energy infrastructure, while the US and Russia have agreed to resume high-level military communications.