Oil Market Slides as Oman Talks Loom

Market Snapshot

Brent crude: $67.52 (‑2.06%)

WTI: $63.20 (‑1.95%)

US crude inventories: down 3.5 million barrels

Distillates: down 5.6 million barrels

Market focus: Friday’s Oman talks and upcoming U.S. employment data

Oil Prices Dip as Diplomacy Eases Risk Premium


Global oil prices eased on Thursday as traders responded to confirmation that talks between the United States and Iran will take place in Oman on Friday. Brent crude slipped 1.2% to $68.60 per barrel, while US West Texas Intermediate (WTI) fell 1.3% to $64.32.


The decline followed a strong bounce earlier in the week, showing how quickly market sentiment can shift on geopolitical developments. While fears of escalating tensions had pushed prices higher, confirmation of upcoming discussions helped reduce short‑term risk premiums and pull prices back.


Oman Talks Set the Tone for Next Moves


Traders are watching the Muscat meeting closely. The discussions are expected to focus on diplomatic issues, with both sides seeking clarity on key terms. The narrow scope of the agenda has kept uncertainty alive: signs of progress could relieve market tensions, while any breakdown or escalation could quickly push prices upward again.


This diplomatic backdrop keeps $70 a barrel in play as a key psychological level for oil.


Supply Dynamics Still Under the Hood

Despite geopolitical headlines dominating the narrative, underlying supply figures remain important. Recent data showed that US commercial crude inventories fell by 3.5 million barrels, placing stocks below the typical seasonal average. Gasoline supplies saw a small increase, but distillate inventories dropped sharply by 5.6 million barrels, hinting at tighter supply conditions for key refined products.


These inventory shifts remind traders that market fundamentals outside geopolitics still matter and can influence prices if demand conditions change.


Export Benchmarks and Market Volatility

Volatility has pushed more trading into export‑linked crude benchmarks, as market participants seek to lock in prices amid shifting conditions. Movements in heavy crude flows and export contracts underscore the interconnectedness of markets and how changing supply sources can affect global pricing dynamics.
Macro Indicators Could Tip the Balance
Beyond geopolitical developments, traders are also focused on upcoming macroeconomic data. The US Employment Situation report, scheduled for release this Friday, could influence the strength of the US dollar and fuel demand expectations. Softer economic data might ease dollar strength and support crude prices, while stronger figures could have the opposite effect.


Markets Stay Alert as $70 Lingers

Oil markets are navigating a mix of diplomatic optimism and underlying uncertainty. With Brent around $68.60 and WTI near $64.32, the immediate focus is on how the Oman talks unfold and how broader economic signals shape demand expectations.


For now, crude remains within striking distance of $70 a barrel, but traders are watching key developments closely to determine whether prices will resume an upward trajectory or settle into a range.