West Texas Intermediate trades near $102.00 after pulling back from five-month highs

West Texas Intermediate (WTI) oil prices have retreated from a five-month peak, settling near $102.20 per barrel in early European trading on Friday. Diplomatic efforts in the Middle East have helped temper price increases, as US Vice President JD Vance engaged in discussions with Iran's Supreme National Security Council Secretary Mohsen Rezaei to resume peace talks.

President Donald Trump endorsed Vance's diplomatic outreach, emphasizing Iran's need for medical supplies and other essential aid. However, oil prices may still rise due to potential US military actions against Iran, a possibility President Trump has repeatedly hinted at following the midterm elections. Despite diplomatic progress, WTI remains more than 14% higher in October, reflecting ongoing tensions between the US and Iran, as well as attacks on Saudi Arabian and Iran-backed Houthi forces in the region.

TD Securities noted that deal talk headlines are currently weighing on the crude oil market, dampening bullish sentiment despite stable fundamentals. WTI, also known as "light" and "sweet" crude, is a high-quality oil primarily sourced in the United States and traded via the Cushing hub. Its price is influenced by supply and demand, global economic conditions, OPEC decisions, and the US Dollar's value, as Oil is predominantly traded in US Dollars.

Weekly API and EIA inventory reports, published every Tuesday and the day after respectively, also affect WTI prices. OPEC's production decisions, typically made at biannual meetings, are another significant price driver, with quota reductions typically leading to higher prices.