Oil Set for Weekly Drop as Iran Risks Recede

Oil prices were mostly unchanged on Friday after a drop in the previous session. Brent crude futures rose 3 cents to $67.55 a barrel, while U.S. West Texas Intermediate (WTI) edged up 1 cent to $62.85. Both benchmarks are poised for their second weekly decline amid easing geopolitical concerns and supply worries.

The recent downward trend followed earlier gains driven by fears that the U.S. might attack Iran over its nuclear programme. However, comments by U.S. President Donald Trump suggesting a possible deal with Iran eased those fears and weighed on prices.

Analysts say markets are pricing in less immediate risk from Iran, lowering the geopolitical risk premium. This shift has helped pull oil prices back after recent volatility tied to Middle East tensions.

In addition to geopolitics, the International Energy Agency forecasted slower global demand growth this year. The agency projects that overall oil supply will exceed demand in 2026, contributing to downward pressure on prices.

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U.S. crude stockpile data also showed a large build, further dampening price sentiment. Traders also anticipate increased Venezuelan oil supply, potentially returning to higher output levels after sanctions easing.

The U.S. Treasury plans to issue more allowances that will ease sanctions on Venezuelan energy, and U.S.-controlled Venezuelan oil sales have already exceeded $1 billion, with more expected.

Despite the weekly declines, oil markets remain sensitive to geopolitical developments. Any renewed tensions or supply disruptions could quickly shift the price outlook later in the year.