Oil Prices Hold Gains

WTI crude futures traded choppily on Friday, dipping earlier on easing Middle East risk before rebounding over 0.5% to trade close to $63.7 a barrel, though prices remained on track for a first weekly decline in seven weeks. US Iran nuclear talks in Oman, which Iranian officials described as a good start with plans to continue negotiations, reduced fears of near term supply disruptions from a region that accounts for roughly one third of global crude output. Earlier gains reflected lingering caution as the US pushed to broaden talks beyond nuclear issues, while prior evacuation advisories had heightened sensitivity to escalation risk. That premium faded as diplomatic signals improved, reinforcing expectations of oversupply later this year. Adding to pressure, Saudi Arabia cut official selling prices for its main crude grade to Asia to the lowest since late 2020, highlighting ample supply, though the smaller than expected reduction suggested confidence in demand.

WTI crude futures pared early gains to trade around the flatline near $67.5 a barrel on Friday and were on track for their first weekly decline in seven weeks, as concerns over potential supply disruptions in the Middle East eased. At the same time, investors remained cautious ahead of the outcome of US–Iran nuclear talks. The US is pushing for a broader discussion that includes Iran’s ballistic missile program and regional activities, while Iran insists the talks focus solely on nuclear issues and sanctions relief. Adding to concerns, the US Virtual Embassy in Iran has also urged American citizens to leave immediately. Similar alerts were issued last month, which rattled energy markets over potential supply disruptions Meanwhile, Saudi Arabia cut prices for its main crude grade sold to Asia to the lowest level since late 2020, signaling oversupply, though the smaller-than-expected reduction suggested confidence in demand.

WTI crude oil futures rose over 1% to above $64 per barrel on Friday, reversing earlier losses, as disagreements over the agenda in US–Iran high-stakes talks made progress uncertain. The US is pushing for a broader discussion that includes Iran’s ballistic missile program and regional activities, while Iran insists the talks focus solely on nuclear issues and sanctions relief. Adding to concerns, the US Virtual Embassy in Iran has also urged American citizens to leave immediately. Similar alerts were issued last month, including one when President Trump considered possible military options in Iran, which rattled energy markets over potential supply disruptions from the OPEC producer. Meanwhile, Saudi Arabia cut prices for its main crude grade sold to Asia to the lowest level since late 2020, signaling oversupply, though the smaller-than-expected reduction suggested confidence in demand. Still, oil is heading for its first weekly decline in six weeks.