Crude oil rises on pre-holiday short-covering; gains limited by US-Iran uncertainty
The modest uptick was primarily driven by traders unwinding short positions ahead of the long weekend, which traditionally signals the start of the US summer driving season
Global crude benchmarks edged higher on Friday, 23 May 2025, buoyed by short-covering activity ahead of the extended Memorial Day weekend in the United States. However, the upside remained constrained amid lingering doubts over the prospects of a nuclear agreement between the US and Iran.
Brent crude futures settled at $64.78 per barrel, gaining 34 cents, or 0.54%.
WTI crude closed at $61.53, up 33 cents, also marking a 0.54% increase.
The modest uptick was primarily driven by traders unwinding short positions ahead of the long weekend, which traditionally signals the start of the US summer driving season—the period typically associated with peak demand for motor fuels.
Despite the supportive pre-holiday positioning, market sentiment was tempered by geopolitical uncertainty. US and Iranian negotiators convened in Rome on Friday for another round of talks aimed at curtailing Tehran’s nuclear programme. Traders remain wary that a breakdown in negotiations could trigger disruptions in Middle Eastern crude supply, injecting further volatility into an already fragile market.