Oil futures declined on Friday amid signs of easing tensions between the U.S. and Iran, and expectations that top oil producers may increase output this weekend.
Brent crude futures dropped by 22 cents, or 0.32%, to $68.58 per barrel by 0445 GMT. U.S. West Texas Intermediate (WTI) crude also edged lower by 12 cents, or 0.18%, to $66.88.
Trading volumes were lighter due to the U.S. Independence Day holiday.
The dip followed a report by Axios on Thursday that Washington plans to resume nuclear negotiations with Tehran next week. In response, Iran’s Foreign Minister, Abbas Araqchi, reaffirmed the country’s commitment to the nuclear Non-Proliferation Treaty.
“Thursday’s news that the U.S. is preparing to resume nuclear talks with Iran, and Araqchi’s clarification that cooperation with the U.N. atomic agency has not been halted, considerably eases the threat of a fresh outbreak of hostilities,” said Vandana Hari, founder of oil market intelligence firm Vanda Insights.
Oil prices have also come under pressure from expectations that the Organization of the Petroleum Exporting Countries (OPEC) and allies may agree to boost production to meet rising global demand.
