Oil prices edged down Friday, heading for a weekly decline as the United States and Iran extended nuclear talks. This eased concerns about potential hostilities that could disrupt supply, while OPEC+ is poised to discuss output hikes at its upcoming meeting.
Brent crude futures lost 5 cents to $70.70 a barrel, and U.S. West Texas Intermediate crude fell 1 cent to $65.20. For the week, Brent was on track for a 1.8% decline, and WTI was set to fall around 2.2%.
Traders are in a wait-and-see mode with Iran tensions escalating on one side and a potential production increase from OPEC+ on the other. The United States and Iran held indirect talks in Geneva concerning their nuclear dispute. Media reports indicated discussions stalled initially, but prices eased after an Omani mediator announced progress. Negotiations are set to resume next week in Vienna.
Analysts suggest that while immediate military action seems less likely, a deal before President Trump's March 1-6 deadline remains uncertain. There is a growing chance of limited U.S. military action against Iran. Saudi Arabia is reportedly increasing oil production and exports as a contingency plan.
Additionally, OPEC+ is likely to consider raising its oil output by 137,000 barrels per day for April at its March 1 meeting, following a suspension of production hikes in the first quarter.