Oil Futures Retreat as Diplomatic Hopes Emerge

West Texas Intermediate for August delivery fell 77 cents to $71.31 per barrel by mid-morning Friday, while September Brent crude slipped 45 cents to $75.85. These declines follow a week of sharp volatility triggered by reports of a breakdown in cease-fire talks. Current prices remain roughly $3 per barrel above last week’s closing levels.

Refined products faced steeper downward pressure. August RBOB gasoline futures dropped 8.61 cents to $2.9526 per gallon, though they maintain a modest weekly gain of 5 cents. Meanwhile, ULSD futures for August fell 3.99 cents to $3.5317, still holding a substantial 37-cent increase over the previous week's settlement.

The International Energy Agency cautioned that ongoing friction near the Strait of Hormuz could impede the recovery of global oil supplies. While negotiators are actively attempting to restart peace talks, the threat to critical maritime shipping lanes continues to inject a risk premium into energy markets.