Oil prices moved lower on Friday after the administration of Donald Trump eased some sanctions on Venezuela’s energy sector. Despite the pullback, crude was still on track for strong monthly gains, supported by rising geopolitical tensions in the Middle East.
At 08:55 ET (13:55 GMT), Brent crude futures for March delivery slipped 0.6% to $69.16 per barrel, while West Texas Intermediate (WTI) crude fell 0.7% to $64.96 per barrel.
Even with the decline from near six-month highs, oil prices were set to post gains of about 13% for the month. Markets have been pricing in supply risks linked to escalating Middle East tensions, as well as weather-related disruptions caused by a severe snowstorm in the United States.
U.S. eases some Venezuela oil sanctions
On Thursday, the Trump administration lifted certain restrictions on transactions involving Venezuela’s state-owned oil company PDVSA. The decision allows a U.S. entity to sell and transport Venezuelan crude, a move aimed at encouraging greater American investment in the country’s energy sector.
The policy shift follows Washington’s move earlier in January to take control of Venezuela’s energy industry, a step that Trump has repeatedly said should pave the way for renewed U.S. business involvement.
However, the latest easing did not include provisions allowing a full restart of Venezuelan oil production. As a result, fears of an immediate surge in global supply have been tempered.
Analysts note that any meaningful increase in Venezuelan output would take time, given the country’s deteriorating infrastructure and ongoing political uncertainty following the U.S. capture of President Nicolas Maduro.
Rising pressure on Iran supports prices
Earlier in the week, oil prices climbed sharply as President Trump intensified pressure on Iran over its nuclear program. The U.S. has threatened military action and deployed naval assets to the region, heightening concerns over potential supply disruptions.
Washington continues to enforce strict sanctions on Tehran to limit its oil exports, which are a key source of government revenue. According to reports citing U.S. officials, the administration is also considering targeted actions against senior Iranian figures to destabilize the current leadership.
Analysts at ING said markets are becoming increasingly uneasy about the risk of U.S. intervention. With American vessels moving into the region and Trump warning of possible strikes, they noted that betting against oil prices heading into the weekend appears increasingly risky.
OPEC+ expected to hold output steady
Attention is now turning to the upcoming meeting of OPEC+, scheduled for Sunday. Recent reports suggest the group is likely to keep production levels unchanged.
OPEC+ had previously increased output by roughly 2.9 million barrels per day through 2025, a move that weighed heavily on prices. However, the group paused further monthly increases from January, citing concerns over oversupply and softer global demand.
In its latest monthly report released earlier this year, OPEC+ projected stronger oil demand in 2026 and 2027, while playing down fears of a prolonged supply glut.
