Crude-oil and refined product futures prices were moving lower after Iran reportedly presented a new proposal to resume negotiations to mediators for a peace deal with the U.S.

Still, petroleum contracts remained on track Friday to end the week with solid gains.

If the futures’ declines hold, it will mark a second straight day of pullback for oil prices.

U.S. crude futures were more than 3% lower, with the Nymex June West Texas Intermediate crude contract down $3.75 to $101.30/bbl while July prices shed $3.05 to $96.10/bbl.

Brent crude prices were down by 1.5%. The July ICE Brent crude contract was lower by $2.45 to $107.95/bbl in its first session in the front-month position. August Brent was trading $1.95 lower to $101.45/bbl.

ULSD futures are also on track for a second day of losses, with prices down about 2.5%. June ULSD prices were 11.60cts in the red to $3.9650/gal while July prices were 9.55cts lower to $3.7930/gal.

RBOB futures were seeing losses of about 1.4%, with the June contract off by 5.70cts to $3.5580/gal while July prices were trading 4.85cts lower to $3.3980/gal.

Despite the declines, oil prices remain more than $7/bbl higher than last Friday’s settlement, while RBOB futures are up about 24cts/gal and ULSD racking up gains of nearly 80cts/gal.

Iranian state media on Friday reported that the country’s leaders have sent a new proposal for negotiations with the U.S. to mediators in Pakistan, without providing more specifics.

However, oil markets are reacting to the possibility of an agreement that could reopen the Strait of Hormuz and allow for the flow of tanker traffic.

An easing of futures prices could provide some relief for U.S. fuel retailers, who have seen average gross rack-to-retail margins for gasoline pressured amid rapidly rising wholesale costs.

Gasoline margins Friday averaged 16.3cts/gal, down about 27cts from a year earlier. Margins in Delaware and Montana were in negative territory Friday, while 17 other states were single margins averaging in the single digits.

The pressure on margins comes even as U.S. retail gasoline prices on Friday averaged $4.3917/gal. Not only is that a multi-year high, it is also more than 33cts/gal higher than a week ago.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

— Reporting by Steve Cronin, scronin@opisnet.com; Editing by Frank Tang, ftang@opisnet.com

(END) Dow Jones Newswires

05-01-26 1230ET