Oil prices were little changed on Friday, set for the second consecutive weekly loss as investors' concerns about US-Iran conflict risks receded and the International Energy Agency's (IEA) forecast of weaker than expected global oil demand growth this year.
Brent, the global benchmark for crude, was down 0.03 per cent to $67.50 per barrel as of 7pm UAE time on Friday, after falling nearly 3 per cent on Thursday. West Texas Intermediate, which tracks US crude, was down 0.21 per cent to $62.71 per barrel.
Both benchmarks were poised to register weekly declines, with Brent and WTI set to drop by 0.3 per cent and 0.7 per cent, respectively.
“The broader markets have been gripped by risk-off sentiment as the ongoing nuclear talks between Washington and Tehran are likely to drag on without a quick resolution,” said Vijay Valecha, chief investment officer of Century Financial. He added that US President Donald Trump “appears to be taking a more measured approach, allowing time for further discussions”.
“This has tempered the possibility of short-run military action that could disrupt supplies,” Mr Valecha said.
Gold, meanwhile, was up 1.30 per cent at $5,012.90 an ounce. Mr Trump has said that he can see discussions with Iran stretching for as long as a month, reducing the possibility of imminent military action, which could threaten supplies. The market on Friday “paused to reassess the risk of a US-Iran conflict”, said Vandana Hari, chief executive of Singapore's Vanda Insights.
Prices fell sharply on Thursday after “traders pared back the Iran war premium, following comments from [Mr Trump] that significantly lowered the perceived threat of an imminent strike on the Islamic Republic”.
Meanwhile, the IEA on Thursday forecast that global oil supply will continue to outpace demand in 2026. In its latest monthly report, the IEA said estimated that supply will exceed demand by around 3.7 million barrels per day this year.
“With supply continuing to outpace demand, observed oil inventories rose by a further 37 mb in December, taking global stock builds in 2025 to an extraordinary 477 mb, or 1.3 mb/d on average, a level not seen since 2020,” the report said.
Venezuela plans to grant Chevron and Respol additional oil production rights, which could further boost output, Mr Valecha said. “However, it is a long process that will require significant time and investment,” he added.
The Trump administration is pushing private companies to revive the nation’s energy sector and is expected to grant additional licenses to allow oil companies to explore and produce in Venezuela without violating sanctions.
ConocoPhillips and other energy companies that lost billions of dollars after Venezuela nationalised its oil industry decades ago are in talks with the acting Venezuelan president, Delcy Rodriguez, over recouping some ground, the US Energy Secretary Chris Wright said on Thursday in an interview on Bloomberg Television.
However, on Friday prices rose moderately as the US was expected to send a second aircraft carrier to the Middle East. Mr Trump appears set to send a second aircraft carrier strike group to the Middle East, ahead of possible military action in Iran, as he warns that any failure in nuclear deal talks would be “very traumatic” for Tehran.
A source familiar with the US Navy’s planning told The National on Thursday that the USS Gerald R Ford is preparing to sail to the region. The vessel is the world's largest aircraft carrier. In November, it was sent to the Caribbean before the US operation to capture Venezuela's president, Nicolas Maduro.
