United States Oil Fund

Exchange-Traded Funds Lower, Equity Futures Mixed Pre-Bell Tuesday Amid Higher Oil Prices, Earnings Deluge

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.7% and the actively traded Invesco QQQ Trust (QQQ) was 1.4% lower in Tuesday's premarket activity amid higher oil prices and a deluge of corporate earnings reports.US stock futures were mixed, with S&P 500 Index futures down 0.7%, Dow Jones Industrial Average futures gaining 0.2%, and Nasdaq futures retreating 1.2% before the start of regular trading.The Case-Shiller Home Price Index and the Federal Housing Finance Agency House Price Index, both for February, will be released at 9 am ET.April's consumer confidence report and Richmond Fed manufacturing index will be released at 10 am ET.In premarket activity, bitcoin was down by 0.7%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1% lower, Ether ETF (EETH) retreated by 0.7%, and Bitcoin & Ether Market Cap Weight ETF (BETH) declined by 0.01%.Power Play:IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) retreated by 0.5%, while the Vanguard Industrials Index Fund (VIS) was flat and the iShares US Industrials ETF (IYJ) was 0.01% lower.Allegion (ALLE) stock was down more than 4% before the opening bell after the company reported lower Q1 adjusted earnings.Winners and Losers:TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) retreated 2.3%, and the iShares US Technology ETF (IYW) was 2% lower, while the iShares Expanded Tech Sector ETF (IGM) was down 2.2%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) declined by 4.2%, while the iShares Semiconductor ETF (SOXX) fell by 4%.Intel (INTC) shares were up more than 1% in Tuesday's premarket activity after gaining 2.9% at the previous close. Bloomberg reported Monday, citing a person familiar with the matter, that the company has launched an investment-grade bond sale to help finance its $14.20 billion plan to regain full ownership of its Irish chip manufacturing facility.EnergyThe iShares US Energy ETF (IYE) was up 1.4%, while the State Street Energy Select Sector SPDR ETF (XLE) rose by 1.7%.BP (BP) stock was up more than 3% before Tuesday's opening bell after the company reported higher Q1 underlying replacement cost profit and sales.ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.3%, and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was down 0.3%. The iShares US Consumer Staples ETF (IYK) advanced 0.8%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.4%. The VanEck Retail ETF (RTH) was 0.2% lower, while the State Street SPDR S&P Retail ETF (XRT) declined by 0.2%.Coca-Cola (KO) shares were up more than 2% pre-bell after the company reported higher Q1 adjusted earnings and revenue.Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.4%, the Vanguard Health Care Index Fund (VHT) was up 0.5%, while the iShares US Healthcare ETF (IYH) was flat. The iShares Biotechnology ETF (IBB) retreated by 0.1%.Zimmer Biomet (ZBH) stock was down more than 2% premarket after closing the prior session with a 1.5% gain. The company reported higher Q1 financial results and said its chief financial officer, Suketu Upadhyay, is leaving the company.FinancialThe State Street Financial Select Sector SPDR ETF (XLF) advanced 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) was up 1.1%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 1.4% lower.Barclays (BCS) shares were down more than 2% pre-bell. Bloomberg reported the company has reserved 228 million British pounds ($307.9 million) in Q1 to cover the collapse of specialty lender MFS.CommoditiesFront-month US West Texas Intermediate crude oil rose by 5.1% to $101.28 per barrel on the New York Mercantile Exchange. Natural gas retreated by 0.7% to $2.53 per 1 million British Thermal Units. The United States Oil Fund (USO) increased by 4.7%, while the United States Natural Gas Fund (UNG) was 0.4% lower.Gold futures for May were down by 2.6% at $4,573.30 an ounce on the Comex. Silver futures retreated by 3.9% to $72.60 an ounce. SPDR Gold Shares (GLD) was 2.3% lower, and the iShares Silver Trust (SLV) fell by 3.9%.

Brent Crude Up 3.1% at US$111.55 and NY Crude Up 3.6% at Near US$99.90

U.S. Energy Production Climbs 3% YoY in January, EIA Reports

U.S. primary energy production rose 3% year over year in January to 9.1 quadrillion British thermal units, the U.S. Energy Information Administration said in its Monthly Energy Review released Monday.Total fossil fuels production in January was made up of 46% dry natural gas, 31% crude oil, 12% crude oil and 11% natural gas plant liquids, the EIA reported.Total renewable energy production was composed of 56% biomass, 20% wind, 12% hydroelectric power, 11% solar and 1% geothermal energy, according to the agency.U.S. natural gas plant liquids production was 7% higher in January than in the year-ago month. Dry natural gas production and renewable energy production each climbed 4%. Nuclear electric power production and coal production each increased 2%. Crude oil production rose 1%.

U.S. Crude Oil Stocks Likely Fell 2.0 Million Barrels in Week Ended April 24, Macquarie Says

U.S. crude oil inventories are forecast to have fallen 2.0 million barrels in the week ended April 24, following an increase of 1.9 million barrels in the prior week, Macquarie said in a Monday note.From refineries, crude runs are expected to have increased 0.1 million barrels per day. Net imports are projected to have sharply declined, with exports up 1.3 million barrels per day and imports up 0.1 million barrels per day, Macquarie said.Implied domestic supply is expected to have risen 0.3 million barrels per day. Strategic petroleum reserves are forecast to have dropped 7.1 million barrels, according to Macquarie.Gasoline stocks are forecast to have decreased 4.0 million barrels, while distillate stockpiles are expected to have fallen 2.4 million barrels. Jet stocks, meanwhile, are projected to have gained 0.8 million barrels. Implied domestic demand for these three products are projected at 14.4 million barrels per day, Macquarie said.

Crude Oil Prices Jump Amid Stalled Talks Between U.S., Iran

Crude oil prices surged on Tuesday as stalled peace talks between the U.S. and Iran fueled market concerns about prolonged disruptions in supply flows through the Strait of Hormuz.Brent crude at last look rose 2.8% to US$111.23/barrel and West Texas Intermediate crude climbed 3.1% to $99.31/barrel. U.S. President Donald Trump is not satisfied with Iran's latest proposal to end the war, leaving the conflict deadlocked, Reuters said in a Tuesday report, citing an unnamed U.S. official.Iranian sources reported that it avoided addressing the nuclear program until hostilities cease and Gulf shipping disputes are resolved, the report said."With peace talks stalled and no clear path to reopening the Strait of Hormuz, traders are factoring in a prolonged disruption to a critical artery of global supply," Reuters quoted Rystad Energy analyst Jorge Leon as saying."Even in a best-case scenario, any US-Iran agreement is likely to be narrow and partial, leaving the Strait issue unresolved, which means the upside risks to prices remain," Leon added.

Update: WTI Oil Rises as Expected Talks Between Iran and the U.S. Fail to Take Place

West Texas Intermediate (WTI) crude oil closed higher Monday as talks expected to be held over the weekend between the United States and Iran in Pakistan didn't happen, even as Iran offered to reopen the Strait of Hormuz in return for it being allowed to continue its nuclear program and the U.S. ending the blockade of its ports.WTI oil for June delivery closed up US$1.97 to settle at US$96.37 per barrel, while June Brent oil was last seen up US$3.13 to US$108.46.Iran closed the Strait of Hormuz after the United States and Israel launched attacks on the country on Feb. 28. The Strait is the chokepoint for 20% of daily global oil demand supplied by Persian Gulf nations and its closure has produced the largest-ever supply shock, pushing up oil prices by 41% since the start of the war.Talks expected to be staged in Islamabad over the weekend were cancelled as negotiators failed to turn up, though a ceasefire held as the war enters its third month."With face to face negotiations failing to materialize in Islamabad despite the market hour headlines pointing to progress in the talks, it seems that neither side feels sufficient pressure to make serious concessions. For eight weeks, the White House has been exceedingly successful in deploying the "over soon" message to keep a lid on front month prices," Helima Croft, Head of Global Commodity Strategy and MENA Research at RBC Capital Markets, wrote.The Guardian on Monday reported Iran is offering to end its chokehold on the Strait in return for an end to the U.S. blockade, and without addressing concerns around its nuclear program, which U.S. President Trump has made a key demand for ending the war. The paper said the proposal was passed to the United States by Pakistan.

June WTI Crude Oil Contract Closes Up US$1.97; Settles at US$96.37 per Barrel

Sector Update: Energy Stocks Advance Premarket Monday

Energy stocks were advancing premarket Monday, with the State Street Energy Select Sector SPDR ETF (XLE) 0.6% higher.The United States Oil Fund (USO) was up 1.4% and The United States Natural Gas Fund (UNG) was 4.1% higher.Front-month US West Texas Intermediate crude oil was 1.9% higher at $96.16 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 2% to $107.41 per barrel, and natural gas futures were up 1% at $2.67 per 1 million British Thermal Units.The UK's Seagreen wind farm, which is 25.5%-owned by TotalEnergies (TTE), has delayed a fixed-price government contract, preferring to sell electricity at higher market rates, Bloomberg News reported, citing data it compiled. TotalEnergies shares were 0.8% higher pre-bell.ARC Resources said it has entered into a definitive agreement to be acquired by Shell (SHEL) in a cash-and-share deal valued at about 22 billion Canadian dollars ($16.17 billion). Shell stock was up 0.4% premarket.

Oil Prices Rise as Expected Talks Between Iran and the U.S. Fail to Take Place

Oil prices rose early Monday as talks expected to be held over the weekend between the United States and Iran in Pakistan didn't happen. But prices eased off overnight highs as Iran offered to reopen the Strait of Hormuz in return for it being allowed to continue its nuclear program and the U.S. ending the blockade of its ports.West Texas Intermediate crude oil for June delivery was last seen up $1.36 to US$95.76 per barrel, after earlier touching US$97.10, while June Brent oil was up US$1.44 to US$106.77.Iran closed the Strait of Hormuz after the United States and Israel launched attacks on the country on Feb. 28. The Strait is the chokepoint for 20% of daily global oil demand supplied by Persian Gulf nations and its closure has produced the largest-ever supply shock, pushing up oil prices by 41% since the start of the war.Talks expected to be staged in Islamabad over the weekend were cancelled as negotiators failed to turn up, though a ceasefire held as the war enters its third month."With face to face negotiations failing to materialize in Islamabad despite the market hour headlines pointing to progress in the talks, it seems that neither side feels sufficient pressure to make serious concessions. For eight weeks, the White House has been exceedingly successful in deploying the "over soon" message to keep a lid on front month prices," Helima Croft, Head of Global Commodity Strategy and MENA Research at RBC Capital Markets, wrote.The Guardian on Monday reported Iran is offering to end its chokehold on the Strait in return for an end to the U.S. blockade, and without addressing concerns around its nuclear program, which U.S. President Trump has made a key demand for ending the war. The paper said the proposal was passed to the United States by Pakistan.

Exchange-Traded Funds Down, Equity Futures Mixed Pre-Bell Monday Amid Hormuz Uncertainty, Corporate Earnings

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.1%, and the actively traded Invesco QQQ Trust (QQQ) was 0.2% lower in Monday's premarket activity amid uncertainty surrounding the Strait of Hormuz reopening and corporate earnings for the prior quarter.US stock futures were mixed, with the S&P 500 Index futures down by 0.01%, Dow Jones Industrial Average futures slipping 0.1%, and Nasdaq futures gaining 0.1% before the start of regular trading.The Dallas Federal Reserve manufacturing survey for April will be released at 10:30 am ET.In premarket activity, bitcoin was down by 0.6%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.1% higher, Ether ETF (EETH) retreated 0.02%, and Bitcoin & Ether Market Cap Weight ETF (BETH) declined by 0.02%.Power Play:Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) declined by 0.1%, the Vanguard Health Care Index Fund (VHT) was up 0.7%, while the iShares US Healthcare ETF (IYH) slipped 1.1%. The iShares Biotechnology ETF (IBB) was flat.Organon (OGN) stock was up more than 16% premarket after the company agreed to be acquired by Sun Pharmaceutical Industries for $14 per share in an all-cash deal with an enterprise valuation of $11.75 billion.Winners and Losers:ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.1%, and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was up 0.2%. The iShares US Consumer Staples ETF (IYK) declined by 0.2%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.2%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) was 0.3% lower.Domino's Pizza (DPZ) shares were down more than 4% pre-bell after the company reported lower-than-expected fiscal Q1 earnings and revenue.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) advanced by 0.2%, the iShares US Technology ETF (IYW) was 0.4% higher, and the iShares Expanded Tech Sector ETF (IGM) was up 0.5%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) gained by 0.6%, while the iShares Semiconductor ETF (SOXX) rose by 0.5%.Tower Semiconductor (TSEM) shares were up more than 4% in Monday's premarket activity after the company and Axiro Semiconductor said that Axiro's Ku- and X-band radar beamforming integrated circuits are now ready for deployment in critical defense systems.IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.02%, while the Vanguard Industrials Index Fund (VIS) gained 0.4% and the iShares US Industrials ETF (IYJ) was flat.Joby Aviation (JOBY) stock was up more than 3% before the opening bell after the company said it completed the first point-to-point electric vertical takeoff and landing passenger flights in New York.FinancialThe State Street Financial Select Sector SPDR ETF (XLF) retreated by 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.4%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.3% higher.HBT Financial (HBT) shares were up more than 1% pre-bell after the company reported higher Q1 adjusted earnings and operating revenue.EnergyThe iShares US Energy ETF (IYE) gained 0.02%, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 0.5%.TotalEnergies (TTE) stock was up more than 1% before the opening bell after news reports that the company is running its Gonfreville, France, site at its full capacity to maintain the supply of oil to the domestic market.CommoditiesFront-month US West Texas Intermediate crude oil advanced by 0.7% to $95.07 per barrel on the New York Mercantile Exchange. Natural gas gained by 1% to reach $2.67 per 1 million British Thermal Units. The United States Oil Fund (USO) increased by 0.9%, while the United States Natural Gas Fund (UNG) was 3.7% higher.Gold futures for May were down by 0.4% at $4,720.60 an ounce on the Comex. Silver futures retreated by 0.8% to $76.36 an ounce. SPDR Gold Shares (GLD) was 0.3% lower, and the iShares Silver Trust (SLV) fell by 0.4%.

NY Crude Now Up 0.7% at Just Over US$95, Was Near US$96.30; Brent Crude Now Up 1% at US$106.36, Was Near US$107.60

NY Crude Up 2% at Near US$96.30 and Brent Crude Up 2.2% at Near US$107.60

Brent Crude Up 2.4% at Near US$107.90 As US-Iran Peace Talks Stall

Crude Oil Prices Rise on Stalled U.S.-Iran Peace Talks

Crude oil prices rose on Monday as talks to end the war between the U.S. and Iran remain frozen and flows through the crucial Strait of Hormuz continue to be disrupted.Brent crude at last look gained 2.7% to US$108.17/barrel and West Texas Intermediate crude climbed 2.4% to $96.63/barrel. The U.S. and Iran appear to still be far apart on issues including Iran's nuclear ambitions and the reopening of the strait, Reuters said in a Monday report."The diplomatic stand-off means that every day 10-13 million barrels of oil fail to get to the international market, worsening an already tight oil balance. Therefore, there is only one direction for oil prices to go," Reuters quoted PVM Oil Associates analyst Tamas Varga as saying.Goldman Sachs raised its fourth-quarter oil price forecasts to $90/barrel for Brent and $83/barrel for WTI, citing reduced output from the Middle East, the report said.

Update: WTI Oil Falls as a Report Says Peace Talks Between the U.S. and Iran May Resume

West Texas Intermediate (WTI) crude oil fell on Friday following a report that said Pakistani officials expect another round of talks between the United States and Iran.WTI crude oil for June delivery closed down US$1.45 to settle at US$94.40 per barrel, while June Brent oil was last seen up US$0.15 to US$105.22.Bloomberg News reported Iranian Foreign Minister Abbas Araghchi and a team of negotiators are expected to arrive in Islamabad late on Friday for talks with a U.S. delegation already in place. The Wall Street Journal said U.S negotiators Steve Witkoff and Jared Kushner will travel the Pakistan capital for the talks that could re-open the Strait of Hormuz.The Strait is the chokepoint for exports from Persian Gulf nations, which supplied 20% of daily oil demand prior to the Feb. 28 start to the war, which also trapped shipments of of diesel and jet fuel, as well as petrochemical feedstocks and fertilizers."What began as a crude oil supply shock linked to the effective closure of the Strait of Hormuz has now broadened into a multi-commodity disruption. The implications are no longer confined to energy markets alone but are spreading into industrial production, transportation, and ultimately agriculture and food price," Ole Hansen, head of commodity strategy at Saxo Bank, wrote.Still, a quick end to the war is unlikely to produce a quick end the largest-ever energy supply shock. The U.S. Pentagon on Thursday warned it may take six months to clear mines laid in the Strait, the Washington Post reported on Thursday."That is a completely different timescale from what the financial market is pricing. Even a political deal tomorrow does not immediately reopen the strait," Ole Hvalbye, a commodities analyst at SEB Research, wrote.

June WTI Crude Oil Contract Closes Down US$1.45; Settles at US$94.40 per Barrel

Sector Update: Energy Stocks Lean Lower Premarket Friday

Energy stocks were leaning lower premarket Friday, with the State Street Energy Select Sector SPDR ETF (XLE) declining by 0.8%.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 0.4% lower at $95.45 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil gained 0.2% to reach $105.28 per barrel, and natural gas futures were up 1% at $2.67 per 1 million British Thermal Units.SLB (SLB) shares were down more than 1% after the company reported lower Q1 adjusted earnings.Eni (E) stock was 0.2% lower after the company posted a decline in Q1 net profit.TotalEnergies (TTE) has secured financing for its Mirny onshore wind and battery energy storage system project in southeast Kazakhstan, the company said. TotalEnergies shares were marginally lower premarket.

Exchange-Traded Funds Rise, Equity Futures Mixed Pre-Bell as Traders Assess Tech Earnings Amid Global Uncertainty

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.4% and the actively traded Invesco QQQ Trust (QQQ) was 1.3% higher in Friday's premarket activity as investors assess technology companies' earnings while global uncertainty persists amid the Middle East conflict.US stock futures were mixed, with S&P 500 Index futures up 0.4%, Dow Jones Industrial Average futures slipping 0.1%, and Nasdaq futures gaining 1.3% before the start of regular trading.The University of Michigan consumer sentiment report for the current month is scheduled to be released at 10 am ET, while the weekly Baker Hughes domestic oil-and-gas rig count is due at 1 pm ET.In premarket activity, bitcoin was up by 0.7%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.6% higher, Ether ETF (EETH) advanced 0.6%, and Bitcoin & Ether Market Cap Weight ETF (BETH) declined by 0.02%.Power Play:Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) retreated by 0.5%, the Vanguard Health Care Index Fund (VHT) was down 0.1%, while the iShares US Healthcare ETF (IYH) was 0.1% lower. The iShares Biotechnology ETF (IBB) was 0.5% higher.Organon (OGN) shares were up 29% in Friday's premarket activity, a day after a media report that India's Sun Pharmaceutical Industries was planning a $13 billion bid for Organon.Winners and Losers:TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) advanced by 2.1%, and the iShares US Technology ETF (IYW) was 1.7% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 2.3%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was 4.2% higher, while the iShares Semiconductor ETF (SOXX) rose by 4.1%.Intel (INTC) stock was 28% higher pre-bell Friday after the company reported overnight higher fiscal Q1 adjusted earnings and revenue in addition to providing fiscal Q2 outlook that surpassed analyst estimates.ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.1% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was up 0.1%. The iShares US Consumer Staples ETF (IYK) was 0.04% higher and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) gained 0.8%. The VanEck Retail ETF (RTH) and the State Street SPDR S&P Retail ETF (XRT) were flat.Coursera (COUR) stock was 16% lower before the opening bell on Friday after the company reported overnight lower Q1 non-GAAP earnings that also trailed analysts' estimates.FinancialThe State Street Financial Select Sector SPDR ETF (XLF) slipped 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.9%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 1.1% higher.Hartford Insurance Group (HIG) shares were down 4.4% before Friday's bell, a day after the company posted lower-than-expected Q1 core earnings and revenue.EnergyThe iShares US Energy ETF (IYE) retreated by 1%, while the State Street Energy Select Sector SPDR ETF (XLE) was down by 1.1%.SLB (SLB) shares were down 3.7% before Friday's bell after the company posted lower Q1 adjusted earnings.IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) retreated by 0.7%, while the Vanguard Industrials Index Fund (VIS) was 0.2% lower and the iShares US Industrials ETF (IYJ) was flat.Norfolk Southern (NSC) shares were down 1.1% before the opening bell Friday after the company reported lower Q1 adjusted EPS.CommoditiesFront-month US West Texas Intermediate crude oil retreated by 1.3% to $94.63 per barrel on the New York Mercantile Exchange. Natural gas declined by 2.4% to $2.70 per 1 million British Thermal Units. The United States Oil Fund (USO) decreased by 1.4%, while the United States Natural Gas Fund (UNG) was 1.7% lower.Gold futures for May were down by 0.1% at $4,721.50 an ounce on the Comex. Silver futures gained by 0.9% to reach $76.17 an ounce. SPDR Gold Shares (GLD) was 0.4% higher, and the iShares Silver Trust (SLV) advanced by 0.5%.

Oil Prices Fall as a Report Says Peace Talks Between the U.S. and Iran May Resume

Oil prices fell early on Friday following a report that said Pakistani officials expect another round of talks between the United States and Iran.West Texas Intermediate crude oil for May delivery was last seen down US$1.07 to US$94.78 per barrel, while May Brent oil fell US$0.42 to US$104.65.Bloomberg News reported Iranian Foreign Minister Abbas Araghchi and a team of negotiators are expected to arrive in Islamabad late on Friday for talks with a U.S. delegation already in place. The report sent prices down from overnight highs on hopes a potential deal that would reopen the blocked Strait of Hormuz.The Strait is the chokepoint for exports from Persian Gulf nations, which supplied 20% of daily oil demand prior to the Feb. 28 start to the war, which also trapped shipments of of diesel and jet fuel, as well as petrochemical feedstocks and fertilizers."What began as a crude oil supply shock linked to the effective closure of the Strait of Hormuz has now broadened into a multi-commodity disruption. The implications are no longer confined to energy markets alone but are spreading into industrial production, transportation, and ultimately agriculture and food price," Ole Hansen, head of commodity strategy at Saxo Bank, wrote.Still, a quick end to the war is unlikely to produce a quick end the largest-ever energy supply shock. The U.S. Pentagon on Thursday warned it may take six months to clear mines laid in the Strait, the Washington Post reported on Thursday."That is a completely different timescale from what the financial market is pricing. Even a political deal tomorrow does not immediately reopen the strait," Ole Hvalbye, a commodities analyst at SEB Research, wrote.

Brent Crude Now Down 1.5% at Near US$103.50 and NY Crude Down Near 2.2% at Near US$93.80 As Pakistan Officials Say Second Round of U.S. and Iran Talks Expected