Ceasefire Talks Trigger Massive Selloff in Crude Futures

AI Summary

July WTI crude oil futures experienced the largest weekly decline in months as traders removed geopolitical risk premiums amid hopes for diplomatic progress between Washington and Tehran. Despite ongoing bullish supply factors, crude prices settled significantly lower by 8.66% for the week.

July WTI crude oil suffered its largest weekly decline in months as traders aggressively removed geopolitical risk premium from the market on growing hopes that diplomacy between Washington and Tehran could eventually succeed. Through Thursday, May 28, July WTI crude oil traded between a high of $94.70 and a low of $87.11 before settling at $88.60, down $8.40, or 8.66%, for the week. The selloff was notable because it occurred while many of the bullish supply factors that drove crude sharply higher earlier this year remained in place. Traffic through…