SINGAPORE: U.S. crude oil futures extended their losses on Friday, posting their first weekly decline in weeks, as investors focused on the outcome of U.S.-Iranian nuclear talks in Oman later in the day, easing concerns about supply disruptions in the Middle East.
Brent crude oil futures were down 50 cents, or 0.74%, at $67.05 a barrel at 0102 GMT, after settling 2.75% lower in the previous session.
U.S. West Texas Intermediate crude oil fell 52 cents, or 0.82%, to $62.77 a barrel, after closing 2.84% lower on Thursday.
The index is headed for its first weekly decline in more than a month and is down more than 3% from its nearly six-month high in late January, when U.S. President Donald Trump threatened to attack Iran.
The two countries agreed to hold talks in Oman on Friday, as tensions rise as the United States ramps up its forces in the Middle East and regional actors seek to avoid a military conflict that many fear could escalate into a broader war.
Approximately one-fifth of the world’s total oil consumption passes through the Strait of Hormuz between Oman and Iran. Other OPEC members Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, like Iran, export most of their crude oil through the strait.
“Escalating geopolitical tensions between the United States and Iran are contributing to higher oil prices,” Capital Economics analysts said in a note.
“However, we believe geopolitical concerns will give way to weak fundamentals,” they said, noting that a recovery in Kazakhstan’s oil production will help push oil prices towards $50 per barrel by the end of 2026. (Reporting by Florence Tan; Editing by Chris Reese and Thomas Derpinghaus)
