Oil prices edged lower on Friday, poised for weekly declines, after the United States and Iran extended nuclear talks, easing concerns over potential hostilities that could disrupt supply. Additionally, OPEC+ may resume output hikes at its Sunday meeting.
Brent crude futures fell 5 cents to $70.70 a barrel by 03:31 GMT, while U.S. West Texas Intermediate crude declined 1 cent to $65.20. For the week, Brent is on track for a 1.8% loss, and WTI for around a 2.2% decline, reversing some of last week’s gains.
“Traders are in wait-and-see mode heading into the weekend with Iran tensions mounting on one hand, and the OPEC+ meeting on Sunday with a likely production hike on the other hand,” said June Goh, senior analyst at Sparta Commodities.
The United States and Iran held indirect talks in Geneva on Thursday to avert a conflict, following a U.S. military build-up in the region.
During the discussions, oil prices briefly rose more than a dollar per barrel after reports indicated negotiations had stalled over U.S. demands for zero uranium enrichment by Iran and the delivery of all 60% enriched uranium to the United States.
Market watchers said the developments reflect the delicate balance between geopolitical risks and potential increases in oil supply from OPEC+, keeping traders cautious as the weekend approaches.
