Oil prices declined during Asian trading on Friday after the Donald Trump administration eased some sanctions on Venezuela’s energy sector, a move that could gradually bring additional oil supplies from the South American producer back to the market.
At the same time, markets stayed cautious as investors monitored the risk of potential U.S. military action against Iran. Attention also turned to the upcoming weekend meeting of the OPEC+, which is expected to shape near-term supply expectations.
Brent crude futures for March dropped 1.5% to $69.66 per barrel, while U.S. West Texas Intermediate (WTI) futures fell 1.6% to $64.36 per barrel by 21:43 ET (02:43 GMT).
Despite Friday’s pullback from near six-month highs, oil prices were still on track for weekly gains of between 12% and 16%. The rally was driven by rising geopolitical tensions in the Middle East, severe winter storms in the United States that threatened production and transport, and a major output disruption in Kazakhstan.
Trump administration eases Venezuela oil restrictions
On Thursday, the Trump administration lifted restrictions on certain transactions involving Venezuela’s state-run oil company PDVSA. The decision allows a U.S. entity to sell and transport Venezuelan crude, partially reopening the country’s oil flows.
The move appears designed to encourage renewed interest from American companies in Venezuela’s energy sector, following Washington’s earlier seizure of control over the country’s oil industry in January.
However, the policy change stopped short of fully lifting sanctions on Venezuelan oil production. This tempered fears of an immediate surge in global supply, which had emerged after the U.S. takeover of the sector.
Analysts note that any meaningful increase in Venezuelan output is likely to be slow. Years of underinvestment, ageing infrastructure, and political uncertainty following the U.S. capture of President Nicolas Maduro remain significant obstacles.
OPEC+ meeting in focus, output likely unchanged
The OPEC+ group is scheduled to meet on Sunday, with recent reports suggesting that producers are likely to keep output levels steady.
The cartel had previously increased production by roughly 2.9 million barrels per day through 2025, a move that weighed heavily on oil prices. These monthly hikes were paused from January amid concerns about a potential supply glut and softer global demand.
In its latest monthly market report released earlier this month, OPEC+ projected stronger oil demand in 2026 and 2027, while playing down worries over excessive supply.
