United States Oil Fund

Exchange-Traded Funds, Equity Futures Rise Pre-Bell Tuesday Amid Renewed Hopes Around Middle East Peace Deal

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.7% and the actively traded Invesco QQQ Trust (QQQ) was 1% higher in Tuesday's premarket activity amid renewed hopes of peace between the US and Iran after President Trump said talks are "proceeding nicely."US stock futures were higher, with S&P 500 Index futures up 0.7%, Dow Jones Industrial Average futures advancing 0.6%, and Nasdaq futures gaining 1% before the start of regular trading.The Chicago Federal Reserve Bank's monthly National Activity Index rebounded to a reading of 0.14 in April from minus 0.15 in March, compared with expectations for a smaller gain to minus 0.03 in survey of analysts compiled by Bloomberg as of 7:30 am ET.The Philadelphia Federal Reserve Bank's monthly nonmanufacturing activity index declined to minus 23.6 in May from minus 16.5 in the previous month, compared with the expectations for an increase to minus 13 in a survey compiled by Bloomberg, indicating more widespread contraction in the sector.The Case-Shiller National Home Price index rose by 0.7% in March before seasonal adjustment following a 0.3% increase in February.Consumer confidence data for May is due at 10 am ET.The Dallas Fed's manufacturing reading for May will be released at 10:30 am ET.In premarket activity, bitcoin was down by 0.1%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1.8% higher, Ether ETF (EETH) advanced 2.9%, and Bitcoin & Ether Market Cap Weight ETF (BETH) retreated by 0.4%.Power Play:IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.7%, while the Vanguard Industrials Index Fund (VIS) lost 0.03%, and the iShares US Industrials ETF (IYJ) was flat.Elbit Systems (ESLT) stock was up more than 10% before the opening bell after the company reported higher Q1 non-GAAP earnings and revenue.Winners and Losers:FinancialThe State Street Financial Select Sector SPDR ETF (XLF) advanced 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) was up 1.2%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 1.1% lower.FinVolution (FINV) shares were up more than 5% pre-bell after the company reported higher-than-expected Q1 adjusted earnings and net revenue.ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.1% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) gained by 0.02%. The iShares US Consumer Staples ETF (IYK) was down 0.6%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) increased by 0.6%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) was 0.3% higher.Ferrari (RACE) shares were down more than 3% pre-bell a day after the company said it has launched a new all-electric Luce sports car, expanding its lineup with a dedicated electric platform.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) increased by 1.5%, and the iShares US Technology ETF (IYW) was 1.2% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 1.5%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) gained by 4.1%, while the iShares Semiconductor ETF (SOXX) rose by 2.8%.WeRide (WRD) shares were up more than 1% in premarket activity after the company said it will operate its autonomous Robobus at the Roland-Garros for a third consecutive year with Renault Group.EnergyThe iShares US Energy ETF (IYE) was flat, while the State Street Energy Select Sector SPDR ETF (XLE) was down by 1.2%.Eni (E) stock was down more than 2% before the opening bell a day after falling 1.4% at the prior close. The company and its partners, Petroci and Vitol, approved the final investment decision for Cote d'Ivoire's Baleine Phase 3 project, advancing development of the country's largest hydrocarbon discovery.Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.4%, the Vanguard Health Care Index Fund (VHT) was up 0.6%, while the iShares US Healthcare ETF (IYH) gained by 0.9%. The iShares Biotechnology ETF (IBB) was 0.4% higher.Eli Lilly (LLY) stock was up more than 1% premarket after the company said it agreed to acquire Curevo, LimmaTech Biologics and Vaccine in deals worth up to nearly $3.83 billion in total.CommoditiesFront-month US West Texas Intermediate crude oil advanced by 1.2% to $97.49 per barrel on the New York Mercantile Exchange. Natural gas was down 1.2% at $2.98 per 1 million British Thermal Units. The United States Oil Fund (USO) retreated by 0.7%, while the United States Natural Gas Fund (UNG) was 0.9% lower.Gold futures for July retreated by 0.5% to $4,521.20 an ounce on the Comex. Silver futures declined by 0.8% to $76.09 an ounce. SPDR Gold Shares (GLD) was down by 0.4%, and the iShares Silver Trust (SLV) fell by 1.3%.

Oil Prices Mixed Early as U.S. Strikes on Iran Cloud Hopes for Successful Peace Talks

Oil prices were mixed early on Tuesday after the United States carried out strikes on Iran, threatening to derail peace talks between the two countries.West Texas Intermediate crude oil for July delivery was last seen down US$3.85 to US$92.75 per barrel, the lowest since April 21, while July Brent oil was up US$2.90 to US$99.04.While peace talks between Iran and the United States are underway, the United States on Monday launched attacks on what it said were missile-launching sites in Iran.The strikes come as the two countries continue talks to end the three-month war and reopen the Strait, which was the chokepoint for 20% of daily oil demand from Persian Gulf countries. Iran's blockade of the Strait following the Feb. 28 start to the war began the largest-ever oil supply shock and pushed up oil prices by more than half. The U.S. action threatens to prolong the market disruption."Fresh US military strikes in Iran clouded the outlook for an interim agreement between the US and Iran that could help reopen the Strait of Hormuz, a key waterway through which around one-fifth of global oil and LNG flows under normal conditions, and which has remained largely closed since early March. While differences between the parties have narrowed, any eventual peace deal would likely lead only to a gradual reopening, meaning the current tight supply outlook could take months to normalize," Saxo Bank wrote.The Wall Street Journal reported talks between the two countries are continuing in Qatar despite the U.S. action, with Iranian government spokeswoman Fatemeh Mohajerani saying on Tuesday that the indirect talks are likely to continue.

Brent Crude Up 3.1% at Near US$99.10 As US Strikes Iranian Targets While Peace Talks Continue

Brent Crude Oil Prices Rise Following U.S. Strikes on Iran

The benchmark Brent crude oil price climbed on Tuesday amid uncertainty that a peace deal will be reached between the U.S. and Iran following strikes by the U.S. military.Brent crude at last look gained 3.7% to US$99.70/barrel. There was no West Texas Intermediate settlement on Monday due to the Memorial Day holiday.U.S. forces conducted strikes in southern Iran in signs of renewed tensions and the decreasing likelihood of a reopening of the Strait of Hormuz, Reuters said in a Tuesday report."While differences between the parties have narrowed, any eventual peace deal would likely lead only to a gradual reopening, meaning the current tight supply outlook could take months to normalize," Reuters quoted Ole Hansen at Saxo Bank as saying.

TSX Closer: Index Posts Record Highs Even As RBC and National Bank Both Try and Put the Oil Price Shock In Context

The resources heavy Toronto Stock Exchange raced to fresh record intraday and closing highs after rising for a fourth straight session on Monday, even as a sharply lower oil price prompted both RBC and National Bank to try and put the related market shock in context.Today the TSX closed up 359.53 points or 1% at 34,830.89 with most sectors higher. After climbing above 34,840 early in the session, the index then succumbed to some likely profit taking, but then it recovered from nearer 34,700 mid-afternoon.According to Dow Jones Market Data, FactSet the TSX going in to Monday was month-to-date up 1.49% and year-to-date up 2,758.60 points or 8.70%.Base Metals led gainers (up 2.3%) as gold traded higher by midafternoon Monday with the U.S. dollar falling on hopes the United States and Iran are nearing a deal to end the three-month war that has caused the largest-ever energy supply shock. Gold for July delivery was up $49.60 to US$4,606.00 per ounce in electronic trade, with markets closed for the Memorial Day holiday.But Energy was down 3.3% as oil traded sharply lower midafternoon Monday, falling more than 6% as peace negotiations between Iran and the U.S. continue, raising hopes for a deal that will reopen the blockaded Strait of Hormuz. West Texas Intermediate crude oil for July delivery was last seen down US$6.21 to US$90.39 per barrel in electronic trade, with markets closed for the Memorial Day holiday, July Brent oil was down US$7.40 to US$96.14.RBC today moved to put the oil price shock in context, and noted lots of focus on the nominal price of oil (Brent/WTI). The bank said nominal prices matter for inflation, but added the real oil price (i.e. cost per barrel divided by the price level or equivalently the CPI adjusted price of oil) matters for real GDP growth.Among observations, RBC noted the current real price of oil is around the average since 2006. "Oil is neither low nor high." It also noted that to reach the real oil price high in 2022, the nominal price needs to rise to US$131 (+25% compared to current WTI); to reach the average real oil price between 2011-14, the nominal price of oil needs to reach $143 (+38%); and to hit the 2007-2008 average real oil price, the nominal price needs to hit $164 (+58%).In looking at what does it potentially mean, RBC said, yes, the nominal price will cause headline inflation and maybe cause a rise in core inflation.According to RBC, economies generally managed growth "just fine" since 2006 with a similar real oil price as now, and demand destruction is probably a long way off. The bank noted oil intensity, the volume of oil required to generate one unit of gross domestic product (GDP), has been steadily falling over the past 40 years (down 50% since the mid-70s) and particularly in the past 20 years due to improvements in technology & transportation. "Thinking about it another way, the U.S. consumes roughly the same amount of barrels now as in the mid-70s, but real GDP is higher by a magnitude of 3.5x. So, an oil shock has been having a smaller impact on demand/consumption/GDP over time," RBC added.For policymakers, RBC said "the inflation consequences are real while the demand implications are murkier." To protect against the worst outcome (inflation), policy might need to be tightened, even if reluctantly, the bank added. "Now if a US-Iran deal caused oil to fall materially, the calculus would shift significantly less hawkish. This is a generic conclusion on central bank reaction functions."Elsewhere, Ethan Currie and Taylor Schleich over at National Bank noted economic data in Canada has "stumbled out the gate" so far in 2026, both in absolute terms (for example, the year-to-date employment decline) and relative terms (compared to consensus expectations).Indeed, last week, Canada's economic surprise index reached its lowest level since the fall of 2022, they said. "Back then, the Bank of Canada was bludgeoning the economy with rate hikes, after an oil supply shock that began earlier in the year contributed to an inflation surge. Sound familiar?," the National Bank added.But when it comes to the economic and inflation environment in 2026, this time is different, allowing the Bank of Canada to take a more patient policy approach, according to the National Bank duo.

Update: Oil Prices Slump as the United States and Iran Continue Peace Talks

Oil traded sharply lower midafternoon Monday, falling more than 6% as peace negotiations between Iran and the Untied States continue, raising hopes for a deal that will reopen the blockaded Strait of Hormuz.West Texas Intermediate crude oil for July delivery was last seen down US$6.21 to US$90.39 per barrel in electronic trade, with markets closed for the Memorial Day holiday, July Brent oil was down US$7.40 to US$96.14.The drop comes as the countries continue talks to end the war that has kept the Strait closed for nearly three months, blocking much of the 20% of daily oil demand supplied by Persian Gulf nations. The Wall Street Journal reported Iran is willing to lift its blockade of the Strait in exchange for the United States ending its blockade of Iranian ports, though Iran warned a final deal is not imminent.The closure of the Strait has boosted oil prices to four-year highs, raising inflation and pressuring U.S. President Trump to come up with a deal to end the war as the high-demand U.S. driving season begins with today's Memorial Day holiday, further squeezing supply."Both Trump and Iran have strong reasons to find a quick way out of the war and crisis, for economic, financial, political and military reasons," SEB Research noted.

Oil Prices Slump as the United States and Iran Continue Peace Talks

Oil traded sharply lower early Monday, falling 6% as peace negotiations between Iran and the Untied States continue, raising hopes for a deal that will reopen the blockaded Strait of Hormuz.West Texas Intermediate crude oil for July delivery was last seen down $5.77 to US$90.83 per barrel, the lowest since April 20, while July Brent oil was down $6.20 to US$97.34.The drop comes as the countries continue talks to end the war that has kept the Strait closed for nearly three months, blocking much of the 20% of daily oil demand supplied by Persian Gulf nations. The Wall Street Journal reported Iran is willing to lift its blockade of the Strait in exchange for the United States ending its blockade of Iranian ports, though Iran warned a final deal is not imminent.The closure of the Strait has boosted oil prices to four-year highs, raising inflation and pressuring U.S. President Trump to come up with a deal to end the war as the high-demand U.S. driving season begins with today's Memorial Day holiday, further squeezing supply."Both Trump and Iran have strong reasons to find a quick way out of the war and crisis, for economic, financial, political and military reasons," SEB Research noted.

Market Chatter: Oil Sands Firms Can Afford Carbon Capture, Canadian Energy Minister Says

Canadian Energy Minister Tim Hodgson said he's "highly confident" that Alberta oil sands companies can absorb the cost of building carbon capture, despite their protests that Canada's climate rules hurt their global competitiveness, Bloomberg is reporting Monday.It noted Prime Minister Mark Carney's government reached an agreement earlier this month with Alberta on the trajectory of its industrial carbon price, a regime that forces heavy polluters to pay for carbon emissions but also generates credits for cutting greenhouse gas outflows.The deal was a crucial step toward building the C$16.5 billion ($12 billion) Pathways carbon capture project for the oil sands, which Carney has said is a necessary condition for approving a new crude oil pipeline to Canada's Pacific coast. As the negotiations unfolded in recent months, however, oil companies began publicly arguing that the carbon price imposes a cost on the Canadian industry that other major oil producers don't bear.In Hodgson's view, those companies were mainly protesting that they weren't directly at the table for the talks, he told Bloomberg in an interview."The reality is the federal government and the provincial government had to agree on what the framework for carbon pricing was before we got them to the table," he said. "Now that that's been done, the engagement will happen. I am highly confident that given how we've structured this, that the cost of Pathways can be readily absorbed."The project spearheaded by five of the largest oil sands companies, including Cenovus Energy Inc. (SU.TO), Imperial Oil Ltd. (IMO.TO) and Suncor Energy Inc. (SU.TO), would capture carbon dioxide from multiple facilities and transport it more than 400 kilometers (249 miles) by pipeline to a storage hub in eastern Alberta, where it would be stored underground.The new agreement targets 16 million metric tons of annual emissions reductions from Pathways -- but gradually over the next two decades. The first phase, to be completed by 2035, would build enough carbon capture to remove 6 million metric tons annually. Hodgson said the hope is that technology will have substantially advanced by then, opening up more choices."I think you're going to see a bunch of new technologies that are going to get cheaper and cheaper and cheaper, and that's going to create options for the Pathways folks," Hodgson said.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Crude Oil Prices Fall as Market Hopes for Peace Deal Between U.S., Iran

Crude oil prices dropped on Monday to two-week lows as the market expects the U.S. and Iran are nearing an agreement to end the war.Brent crude at last look lost 4.8% to US$98.53/barrel and West Texas Intermediate crude fell 5% to $91.78/barrel. U.S. President Donald Trump over the weekend said the two parties had "largely negotiated" an understanding on a peace deal that would reopen the Strait of Hormuz, Reuters said in a Monday report.However, both sides played down hopes that a deal will be reached soon, the report said. Additionally, any normalization in oil flows through the strait will take months, according to analysts."We've been at this stage before, only for talks to break down. Therefore, the market will likely be more cautious about overreacting," Reuters quoted Warren Patterson, head of commodities strategy at ING, as saying."We continue to believe that the key factors for the oil market to watch should be the physical oil flows and so far, flows through the Strait remain restricted," UBS analyst Giovanni Staunovo was quoted as saying.

Update: WTI Oil Edges Up as Hopes for a Diplomatic Agreement to End the War on Iran Fade

West Texas Intermediate (WTI) crude oil closed with a small gain Friday on fading hopes for a quick peace deal between the United States and Iran.WTI crude oil for July delivery closed up US$0.25 to settle at US$96.60 per barrel, while July Brent oil was last seen up up US$0.75 to US$103.33.The rise comes as prospects for a speedy end to the war on Iran fade, though the two sides continue indirect negotiations after the U.S. this week offered Iran a new peace plan. However, a key U.S. demand calling for Iran to surrender its nuclear stockpiles has been rejected by Supreme Leader Mojtaba Khamenei and the Strait of Hormuz, remains blocked, keeping much of the 20% of daily oil demand produced by Persian Gulf nations off the market."Hopes for a diplomatic resolution to the Iran conflict supported markets, with Tehran saying the latest proposal from Washington had helped narrow differences between the two sides. However, major hurdles remain, with the US demanding that Iran hand over its enriched uranium stockpile and commit to ending uranium enrichment, terms Iranian leaders have publicly resisted," Saxo Bank wrote.The supply shock that followed the end of the war has raised oil prices by more than half on an undersupplied market. But demand is set to climb with the start of the U.S. summer driving season which begins with this weekend's Memorial Day holiday.The Guardian reported Fatih Birol, executive director of the International Energy Agency, on Thursday warned the start of the travel season could push oil prices into a "red zone" as inventories continue to deplete, while demand is set to rise amid the travel season. He also said production from the Persian Gulf is likely to take a year to recover from the damage caused by the war.

July WTI Crude Oil Contract Closes Up US$0.25; Settles at US$96.60 per Barrel

Sector Update: Energy Stocks Advance Premarket Friday

Energy stocks were advancing premarket Friday, with the State Street Energy Select Sector SPDR ETF (XLE) up 0.4%.The United States Oil Fund (USO) was down 1.4% and The United States Natural Gas Fund (UNG) was 1.5% lower.Front-month US West Texas Intermediate crude oil was 0.3% higher at $96.66 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil gained 0.9% to reach $103.49 per barrel, and natural gas futures were down 2.3% at $2.95 per 1 million British Thermal Units.TotalEnergies (TTE) is considering selling a 50% stake in a portfolio of European renewable energy assets, Bloomberg reported Friday, citing unnamed people familiar with the matter. TotalEnergies shares were down nearly 2% pre-bell.EU antitrust regulators will decide by June 26 whether to approve or further investigate Baker Hughes' (BKR) proposed $13.60 billion acquisition of Chart Industries (GTLS), Reuters reported, citing European Commission filing. Baker Hughes stock was 0.1% lower premarket.Frontline (FRO) shares were down 0.7% even after the company posted higher Q1 adjusted earnings and revenue.

Exchange-Traded Funds, Equity Futures Higher Pre-Bell Friday Buoyed by Robust Corporate Earnings Season

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.5% and the actively traded Invesco QQQ Trust (QQQ) was 0.4% higher in Friday's premarket activity, buoyed by a robust corporate earnings season.US stock futures were also higher, with S&P 500 Index futures up 0.2%, Dow Jones Industrial Average futures advancing 0.4%, and Nasdaq futures gaining 0.2% before the start of regular trading.The final University of Michigan consumer sentiment reading for May and the leading indicators data for April will be released at 10 am ET.Kansas City Fed's services reading for May is slated for an 11 am ET release.Federal Reserve Governor Christopher Waller speaks on Friday.In premarket activity, bitcoin was down by 0.4%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.5% lower, Ether ETF (EETH) retreated by 0.7%, and Bitcoin & Ether Market Cap Weight ETF (BETH) declined by 0.03%.Power Play:TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) advanced by 0.4%, and the iShares US Technology ETF (IYW) was 0.7% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 0.5%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) increased by 0.5%, while the iShares Semiconductor ETF (SOXX) rose by 0.7%.Workday (WDAY) shares were up more than 7% in premarket activity after the company's fiscal Q1 results overnight surpassed market expectations.Winners and Losers:IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.2%, while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were flat.Rocket Lab (RKLB) stock was up more than 2% before the opening bell after the company received a $90 million US Space Force contract to design, build, and operate two satellites hosting the Heimdall space domain awareness payload.Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.3%, the Vanguard Health Care Index Fund (VHT) was down 0.1%, while the iShares US Healthcare ETF (IYH) was flat. The iShares Biotechnology ETF (IBB) was 0.1% lower.Novo Nordisk (NVO) stock was down more than 1% premarket, after an almost similar fall in the previous session. The European Medicines Agency said it has recommended extending Wegovy's marketing authorization to include its oral formulation for weight management.FinancialThe State Street Financial Select Sector SPDR ETF (XLF) advanced 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.4%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.5% lower.UBS (UBS) shares were down more than 1% pre-bell. The company said Thursday it expects the voluntary review of Credit Suisse's World War II operations to conclude by the end of the year.ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.3% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) gained 0.5%. The iShares US Consumer Staples ETF (IYK) was down 0.2%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) advanced by 0.1%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) increased 0.4%.Yum China Holdings (YUMC) shares were down more than 1% pre-bell, continuing from a 1.3% decline at the prior close. The company said its KFC light-meal business, KPRO, now operates more than 300 sites in China.EnergyThe iShares US Energy ETF (IYE) was inactive, while the State Street Energy Select Sector SPDR ETF (XLE) was down by 0.2%.TotalEnergies (TTE) stock was down more than 1% before the opening bell after Bloomberg reported the company is considering selling a 50% stake in a portfolio of European renewable energy assets.CommoditiesFront-month US West Texas Intermediate crude oil advanced by 1.2% to $97.49 per barrel on the New York Mercantile Exchange. Natural gas was down 1.2% at $2.98 per 1 million British Thermal Units. The United States Oil Fund (USO) retreated by 0.7%, while the United States Natural Gas Fund (UNG) was 0.9% lower.Gold futures for May retreated by 0.5% to $4,521.20 an ounce on the Comex. Silver futures declined by 0.8% to $76.09 an ounce. SPDR Gold Shares (GLD) was down by 0.4%, and the iShares Silver Trust (SLV) fell by 1.3%.

Oil Trading Higher as Hopes for a Diplomatic Agreement to End the War on Iran Fade

Oil traded higher early Friday on fading hopes for a quick peace deal between the United States and Iran. West Texas Intermediate crude oil for July delivery was last seen up $1.32 to US$97.67 per barrel, while July Brent oil was up $210 to US$104.88.The rise comes as prospects for a speedy end to the war on Iran fade, though the two sides continue indirect negotiations after the U.S. this week offered Iran a new peace plan. However, a key U.S. demand calling for Iran to surrender its nuclear stockpiles has been rejected by Supreme Leader Mojtaba Khamenei and the Strait of Hormuz, remains blocked, keeping much of the 20% of daily oil demand produced by Persian Gulf nations off the market."Hopes for a diplomatic resolution to the Iran conflict supported markets, with Tehran saying the latest proposal from Washington had helped narrow differences between the two sides. However, major hurdles remain, with the US demanding that Iran hand over its enriched uranium stockpile and commit to ending uranium enrichment, terms Iranian leaders have publicly resisted," Saxo Bank wrote.The supply shock that followed the end of the war has raised oil prices by more than half on an undersupplied market. But demand is set to climb with the start of the U.S. summer driving season which begins with this weekend's Memorial Day holiday.The Guardian reported Fatih Birol, executive director of the International Energy Agency, on Thursday warned the start of the travel season could push oil prices into a "red zone" as inventories continue to deplete, while demand is set to rise amid the travel season. He also said production from the Persian Gulf is likely to take a year to recover from the damage caused by the war.

Brent Crude Up 2.7% at Near US$105.30 and NY Crude Up 2.15% at About US$98.45

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

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.

Update: WTI Oil Falls Again as Iran is Reportedly Refusing to Surrender Its Uranium Stocks

West Texas Intermediate (WTI) crude oil fell for a third day on Thursday as the United States awaits Iran's response to it latest peace proposal, though reports said the Persian Gulf country will not agree to U.S. demands to end its nuclear program.WTI crude oil for July delivery closed down US$1.91 to settle at US$96.35 per barrel, while July Brent oil was last seen down US$1.54 to US$103.48.The drop comes a day after the United States sent Iran a fresh peace offer while threatening to resume attacks on the country should its terms be rejected. While Iran has yet to formally respond Reuters reported Iranian Supreme Leader Ayatollah Mojtaba Khamenei ordered the country's stocks of enriched uranium would not be surrendered, blocking a key U.S. peace demand.The news agency said that along with Iran's refusal to end its nuclear program, it also formed a Persian Gulf Strait Authority to firm its control of the Strait of Hormuz, the choke point for 20% of global oil demand supplied by Persian Gulf nations.Iran blockaded the Strait at the Feb. 28 start to the war, producing the largest-ever energy supply shock, boosting oil prices by more than half and boosting inflation and raising fears central banks will need to raise interest rates and slow global growth while roiling markets."Oil moved sharply lower (Wednesday) after Trump stated that the US was in the "final stages" of talks with Iran, raising hopes that some form of diplomatic breakthrough could eventually ease supply disruptions. Those hopes faded after subsequent comments warning that "there's more fighting to come unless Iran gets smart. Markets increasingly appear trapped between these alternating signals. The result has been substantial price volatility without delivering the one development that ultimately matters: a reopening of the Strait of Hormuz and a normalization of regional energy flows," Ole Hansen, head of commodity strategy at Saxo Bank, wrote.

July WTI Crude Oil Contract Closes Down US$1.91; Settles at US$96.35 per Barrel

Sector Update: Energy Stocks Advance Pre-Bell Thursday

Energy stocks were advancing pre-bell Thursday, with the State Street Energy Select Sector SPDR ETF (XLE) 0.8% higher.The United States Oil Fund (USO) was up 3.4% and The United States Natural Gas Fund (UNG) was 0.4% higher.Front-month US West Texas Intermediate crude oil was 0.8% lower at $107.77 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 2.5% to $107.65 per barrel, and natural gas futures were up 1.5% at $3.05 per 1 million British Thermal Units.Shell (SHEL), BP (BP), PT Perusahaan Gas Negara, and PT PLN Energi Primer Indonesia signed agreements with Japan's Inpex for liquified natural gas offtake from the Abadi LNG Project at the Masela Block in offshore Indonesia, Inpex said. Shares of Shell and BP were up more than 1% premarket.Equinor (EQNR) and BP joint venture Aker BP have agreed on several transactions to support production across their portfolio on the Norwegian Continental Shelf, the companies said. Equinor shares were up more than 2% pre-bell.Borr Drilling (BORR) stock was down more than 6% after the company reported a wider Q1 net loss.

Exchange-Traded Funds, Equity Futures Lower Pre-Bell Thursday Amid Uncertainty Surrounding US-Iran Talks

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.4% and the actively traded Invesco QQQ Trust (QQQ) was 0.6% lower in Thursday's premarket activity amid increasing uncertainty about the progress of any talks between the US and Iran.US stock futures were also lower, with S&P 500 Index futures down 0.3%, Dow Jones Industrial Average futures slipping 0.2%, and Nasdaq futures retreating 0.5% before the start of regular trading.US initial jobless claims fell to a level of 209,000 in the employment survey week ended May 16 from an upwardly revised 212,000 level in the previous week, compared with expectations for a smaller decrease to 210,000 in survey of analysts compiled by Bloomberg as of 7:30 am ET.April housing starts fell by 2.8% from the previous month to a 1.465 million annual rate, compared with expectations compiled by Bloomberg as of 7:30 am ET for a 1.410 million rate after an increase to a 1.507 million pace in March.April housing starts fell by 2.8% from the previous month to a 1.465 million annual rate, compared with expectations compiled by Bloomberg as of 7:30 am ET for a 1.410 million rate after an increase to a 1.507 million pace in March.The Philadelphia Federal Reserve's monthly manufacturing index fell to minus 0.4 in May after rising to 26.7 in April, compared with expectations for a smaller decrease to a reading of 17.8 in a survey compiled by Bloomberg.Traders will be looking ahead to the S&P global flash estimates of May manufacturing and services conditions, which are slated for a 9:45 am ET release, followed by weekly natural gas stocks at 10:30 am ET.The Kansas City Fed's manufacturing index for May will be released at 11 am ET.Richmond Fed President Tom Barkin is due to speak on Thursday.In premarket activity, bitcoin was down by 0.5%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.5% lower, Ether ETF (EETH) declined 1%, and Bitcoin & Ether Market Cap Weight ETF (BETH) was flat.Power Play:Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.3%, the Vanguard Health Care Index Fund (VHT) retreated by 0.6%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was flat.Nanobiotix (NBTX) stock was down more than 7% premarket after the company said it launched a global follow-on offering of 75 million euros ($87.2 million).Winners and Losers:EnergyThe iShares US Energy ETF (IYE) gained 0.2%, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 0.5%.Borr Drilling (BORR) stock was down more than 7% before the opening bell after the company reported a wider Q1 net loss.FinancialThe State Street Financial Select Sector SPDR ETF (XLF) retreated by 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.8%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was up 1%.Hyperliquid Strategies (PURR) shares were up more than 6% pre-bell a day after Chardan raised its price target for the company's stock to $9.75 from $8.45.IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) retreated by 0.1%, while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.Deere (DE) stock was down more than 3% before the opening bell after the company reported lower fiscal Q2 earnings.ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.8%, and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) retreated 0.6%. The iShares US Consumer Staples ETF (IYK) was 3.5% higher. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.2%. The VanEck Retail ETF (RTH) decreased by 0.2%, while the State Street SPDR S&P Retail ETF (XRT) declined by 0.4%.Kroger (KR) shares were down more than 3% pre-bell after closing the prior session with a 2.7% fall. Chief Executive Officer Greg Foran is looking to implement substantial price cuts to keep the company competitive, Bloomberg reported Thursday, citing an interview with the CEO.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) retreated 0.4%, and the iShares US Technology ETF (IYW) was 0.7% lower, while the iShares Expanded Tech Sector ETF (IGM) was up 0.01%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was down 04%, while the iShares Semiconductor ETF (SOXX) fell by 0.6%.AMD (AMD) shares were down more than 2% in premarket activity after closing the previous day with a 8% rise. The company said it plans to invest more than $10 billion in Taiwan's artificial intelligence ecosystem and is ramping production of its new EPYC processor in Taiwan using Taiwan Semiconductor Manufacturing's (TSM) 2-nanometer process technology.CommoditiesFront-month US West Texas Intermediate crude oil retreated by 0.8% to $107.77 per barrel on the New York Mercantile Exchange. Natural gas was up 0.8% at $3.03 per 1 million British Thermal Units. The United States Oil Fund (USO) increased by 2.7%, while the United States Natural Gas Fund (UNG) was 0.7% lower.Gold futures for May retreated by 0.4% to $4,517.40 an ounce on the Comex. Silver futures declined by 1.1% to $75.36 an ounce. SPDR Gold Shares (GLD) was down by 0.9%, and the iShares Silver Trust (SLV) fell by 1.6%.