Oil prices moved lower in early Friday trading and were on track to finish the week in negative territory for a second consecutive time. Market sentiment was shaped by growing optimism over a possible Russia–Ukraine peace agreement, which helped offset supply concerns linked to the U.S. blockade of Venezuelan oil tankers.
Brent crude futures slipped by 9 cents, or 0.2%, to $59.73 per barrel by 01:11 GMT. U.S. West Texas Intermediate crude declined 16 cents, or 0.3%, to $55.99 per barrel. On a weekly basis, both global benchmarks were down by more than 2%.
U.S. President Donald Trump said on Thursday that negotiations aimed at ending the war in Ukraine appear to be “getting close to something,” ahead of scheduled talks between U.S. and Russian officials later this weekend. The comments added to expectations that geopolitical tensions could ease in the near term.
Meanwhile, uncertainty remains around how the United States plans to implement Trump’s announcement to block sanctioned oil tankers traveling to and from Venezuela. The country accounts for roughly 1% of global oil supply. In a rare enforcement action, the U.S. Coast Guard seized a Venezuelan oil tanker last week.
According to IG analyst Tony Sycamore, uncertainty over enforcement details, combined with optimism surrounding a potential U.S.-brokered Ukraine peace deal, is reducing global supply concerns and softening geopolitical risk premiums in oil markets.
Analysts also noted that additional restrictions on Russian oil exports could pose a more significant supply risk than the blockade targeting Venezuelan tankers. On Thursday, Venezuela approved two very large crude carriers not under sanctions to depart for China, according to sources familiar with the country’s export operations.
Bank of America analysts expect lower oil prices to curb supply growth, which could help prevent a sharp and uncontrolled decline in prices.
From a technical perspective, Sycamore said a rebound that pushes prices above the $56.70–$56.90 resistance zone would support the view that this week’s drop to the $54.98 low was a false downside break. However, a sustained move below the $54.98–$54.90 area could renew bearish momentum and open the door to a test of the psychological $50 level.
