Oil prices slipped on Friday as benchmarks headed for a second straight weekly decline, with fears of a U.S.–Iran conflict easing and reducing the geopolitical risk premium in global markets. Brent crude futures were trading down about $67.40 a barrel, while U.S. West Texas Intermediate (WTI) traded near $62.71, both slipping after significant losses in the previous session.
Earlier in the week, oil had gained on concerns that the U.S. might strike Iran over its nuclear programme, but comments from U.S. President Donald Trump suggesting a potential deal with Tehran helped push prices lower, diminishing conflict-related risk in oil prices.
According to analysts, the reduction in geopolitical risk reflects a broader shift in sentiment as markets factor in signs that Washington may be seeking more time to reach a nuclear agreement with Iran, lowering near-term tensions.
Meanwhile, the International Energy Agency (IEA) noted in its latest monthly report that global oil demand growth this year is expected to be weaker than previously forecast, with total supply set to exceed demand, contributing further to downward pressure on energy prices.
Additional bearish influences included reports of a large build-up in U.S. crude inventories and expectations that Venezuelan oil output could rise, creating greater supply in the market. U.S. Treasury moves to ease sanctions on Venezuelan energy exports have supported the view that additional barrels may soon enter global trade.
Despite these pressures, some market observers pointed out that prices did not plunge sharply in the face of bearish headlines, suggesting that the decline in momentum may be slowing.
