FINWIRES · TerminalLIVE
FINWIRES

Crude Oil Prices Surge on Fading Hopes of a Peace Deal Between U.S., Iran

By

Crude oil prices jumped on Friday after sustaining losses during the week on diminishing confidence in a breakthrough in peace talks between the U.S. and Iran.

Brent crude at last look surged 3.3% to US$105.93/barrel and West Texas Intermediate crude rose 2.7% to $98.92/barrel. Prices are on track for a weekly loss as the market continued to assess a potential peace deal, Reuters said in a Friday report.

The countries, however, are still divided on Tehran's uranium stockpile and controls on the Strait of Hormuz, the report said. With the strait effectively closed, global oil inventories are dropping, analysts said in the report.

"The optimism of a relatively imminent truce and bearish rhetoric whenever Brent approaches $110 prevents oil prices from rallying significantly higher," Reuters quoted PVM Oil Associates analyst Tamas Varga as saying.

Related Articles

Sectors

Sector Update: Energy Stocks Decline Late Afternoon

Energy stocks were lower late Thursday afternoon, with the NYSE Energy Sector Index decreasing 0.4% and the State Street Energy Select Sector SPDR ETF (XLE) falling 1%.The Philadelphia Oil Service Sector Index was declining 1.8%, and the Dow Jones US Utilities Index was adding 0.9%.Front-month West Texas Intermediate crude oil declined 1% to $97.26 a barrel, and the global benchmark Brent crude contract decreased 1.1% to $103.88 a barrel. Henry Hub natural gas futures shed 0.4% to $2.99 per 1 million BTU.In sector news, US natural gas stocks rose by 101 billion cubic feet in the week ended May 15, faster than the 96 billion gain expected in a survey compiled by Bloomberg and following an increase of 85 billion cubic feet in the previous week.In corporate news, Exxon Mobil (XOM) is in talks to acquire rights to produce oil in Venezuela, the New York Times reported. Exxon shares were down 0.7%.ConocoPhillips (COP) Chief Executive Ryan Lance told Bloomberg that recent changes to Venezuela's oil law, intended to woo foreign oil companies, do not go far enough to attract foreign investment to the country. ConocoPhillips shares fell 1.2%.NextEra Energy (NEE) agreed to acquire Caliber Resource Partners for $1.3 billion while setting up a joint venture with Caliber's private equity backer, Quantum Capital, to manage shale assets, Reuters reported. NextEra shares rose 1.5%.Devon Energy (DVN) said it acquired 16,300 net undeveloped acres in the Delaware Basin in New Mexico for about $2.6 billion through a Bureau of Land Management oil and gas lease sale. Devon shares were down 2.6%.

$NEE
Sectors

Sector Update: Financial Stocks Higher Late Afternoon

Financial stocks were higher in late Thursday afternoon trading, with the NYSE Financial Index up 0.3% and the State Street Financial Select Sector SPDR ETF (XLF) fractionally higher.The Philadelphia Housing Index was adding 0.2%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was increasing 0.1%.Bitcoin (BTC-USD) was fractionally higher at $77,492, and the yield for 10-year US Treasuries rose 1.4 basis points to 4.586%.In economic news Thursday, US initial jobless claims fell to 209,000 in the week ended May 16 from an upwardly revised 212,000 in the previous week, compared with expectations for 210,000 in a Bloomberg-compiled survey.The May flash reading of manufacturing conditions from S&P Global rose to 55.3, a 48-month high, from 54.5 in April, compared with the 53.8 anticipated in a Bloomberg-compiled poll.April housing starts fell 2.8% from the previous month to a 1.465 million annual rate, compared with expectations compiled by Bloomberg for a 1.410 million rate.In corporate news, Ares Management (ARES) has raised about $850 million so far for its inaugural closed-ended real estate debt fund, with the firm targeting a total of $1.5 billion for Ares Real Estate Debt Strategies, Bloomberg reported. Ares shares rose 1.1%.KKR (KKR) signed a definitive deal to sell its Circor Aerospace division to Parker-Hannifin (PH) for $2.55 billion, according to a Thursday statement. Funds managed by KKR will continue to own Circor's naval and industrial businesses after the deal. KKR shares were down 0.2%.JPMorgan Chase (JPM) Chief Executive Jamie Dimon said the investment bank will likely hire more AI specialists and fewer bankers, Bloomberg reported, citing an interview. JPMorgan Chase shares were up 0.3%.Chubb (CB) said Thursday its board has authorized a new $7.5 billion share buyback program, starting July 1 with no expiration date. The company also said its quarterly cash dividend was increased to $1.02 per share from $0.97, payable on July 2 to shareholders of record as of June 12. Its shares added 0.5%.

$ARES$CB$JPM$KKR
Sectors

Sector Update: Consumer Stocks Mixed Late Afternoon

Consumer stocks were mixed late Thursday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) decreasing 1% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) adding 0.7%.In corporate news, Stellantis (STLA) is targeting revenue of 190 billion euros ($220.8 billion) by 2030, versus 154 billion euros in 2025. The shares eased 0.1%.Walmart (WMT) issued a fiscal Q2 earnings outlook below market estimates after reporting better-than-expected revenue in Q1. The shares fell 6.8%.Ralph Lauren (RL) outlined full-year revenue guidance implying a slowdown after reporting better-than-expected fiscal Q4 results. The shares jumped 14%.Advance Auto Parts (AAP) cautioned that demand for auto parts and vehicle maintenance may fluctuate amid high gasoline prices after Q1 results came in stronger than expected. The shares rose 14%.

$AAP$RL$STLA$WMT