U.S. Oil Prices Drop as Qatar Urges Iran to Avoid Attacking Israel

U.S. crude oil futures experienced a significant drop of 3% on Friday, following reports that Qatar urged Iran to refrain from attacking Israel during ongoing cease-fire negotiations in Gaza. Qatar's Prime Minister communicated this message to Iranian leaders after the first day of talks in Doha, emphasizing the potential consequences of any aggression while diplomatic efforts are underway, according to sources cited by The Washington Post. On the trading front, the West Texas Intermediate September contract fell to $76.13 per barrel, a decrease of $2.02 or 2.58%. Despite this decline, U.S. crude oil has seen a year-to-date increase of 6.2%. Similarly, the Brent September contract dropped to $79.15 per barrel, down $1.91 or 2.36%, while maintaining a 2.7% gain for the year. Gasoline and natural gas prices also saw declines, with RBOB gasoline down 4 cents to $2.31 per gallon and natural gas down 3 cents to $2.16 per thousand cubic feet. The cease-fire discussions are set to continue, as confirmed by White House national security spokesperson John Kirby. Earlier in the week, U.S. benchmark prices surged over 4% due to escalating fears of an Iranian attack on Israel. Market analysts note that concerns about weakening oil demand in China are also contributing to the current volatility in oil prices, highlighting the ongoing interplay between geopolitical events and market fundamentals.