U.S. Natural Gas Prices Edge Lower in Week Ended May 27, EIA Reports

Brent Crude Down 1.6% at About US$92.20

Crude Oil Prices Fall After Reports of Potential U.S.-Iran Ceasefire Extension Deal

Crude oil prices fell on Friday following reports that an agreement has been reached between the U.S. and Iran to potentially extend their ceasefire.Brent crude at last look lost 1.3% to US$92.46/barrel and West Texas Intermediate crude declined 1.7% to $87.39/barrel. Both benchmarks are on track for their steepest weekly decline since early April.The U.S. and Iran reportedly reached an agreement on Thursday to extend the ceasefire and lift restrictions on shipping through the Strait of Hormuz, Reuters said in a Friday report, citing unnamed sources. The deal has not been approved by U.S. President Donald Trump and Iranian state media said it has not been finalized, according to the report."While oil flows through the Strait of Hormuz remain restricted and oil inventories keep falling, the market focus remains on the possibility of a deal between the U.S. and Iran," Reuters quoted UBS analyst Giovanni Staunovo as saying.A reopening of the strait would offer some immediate relief to the oil market, but recovery remains uncertain, analysts at ING said, as reported by Reuters.

Sector Update: Energy Stocks Mixed Late Afternoon

Energy stocks were mixed late Thursday afternoon, with the NYSE Energy Sector Index fractionally lower and the State Street Energy Select Sector SPDR ETF (XLE) up 0.2%.The Philadelphia Oil Service Sector Index was falling 1.5%, and the Dow Jones US Utilities Index shed 1%.Front-month West Texas Intermediate crude oil rose 0.5% to $89.14 a barrel, and the global benchmark Brent crude contract shed 0.4% to $93.93 a barrel. Henry Hub natural gas futures climbed up 5% to $3.04 per 1 million BTU.In sector news, US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 12.4 million barrels in the week ended May 22 following a fall of 17.8 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks declined by 3.3 million barrels after a 7.9-million-barrel decline in the previous week, a larger drop than the 3-million-barrel decrease expected in a Bloomberg survey.In corporate news, BP's (BP) former chairman Albert Manifold, who was ousted earlier in the week, had fallen out with company secretary Ben Mathews before his removal from the role, the Financial Times reported. BP shares were down 0.4%.Ecopetrol (EC) said Thursday its board has postponed the start date of the previously announced unpaid leave of Chief Executive Ricardo Roa Barragan. Ecopetrol shares fell 1.1%.TotalEnergies (TTE) and Stellantis (STLA) have renewed and expanded their partnership in Europe to develop and deliver engine oils and lubricants, the companies said. TotalEnergies shares rose 0.8%.Baker Hughes (BKR) said it has secured multiyear contract extensions with Equinor (EQNR) for drilling, well services and wireline intervention in the North Sea. Baker Hughes shares climbed 2.3%, and Equinor was up 0.1%.