Crude oil prices edged lower on Friday and looked set for a second straight weekly decline as concerns about a possible US‑Iran conflict eased. The slide matters for global energy markets and traders who had priced geopolitical risk into crude prices. Brent and US benchmarks both reflected weakening risk premiums amid mixed supply and demand signals.
Brent crude futures were down about 0.1 per cent near $67.4 a barrel, while US West Texas Intermediate (WTI) slipped roughly 0.2 per cent toward $62.7. Both benchmarks fell sharply in the prior session and are on track to register weekly losses of roughly 0.8 per cent for Brent and 1.1 per cent for WTI.
Read more: Oil prices climb amid rising US-Iran tensions
Prices had climbed earlier this week on worries the United States might strike key Middle Eastern oil producer Iran over its nuclear programme, but comments from President Donald Trump about a potential deal within the next month helped reduce near‑term geopolitical risk premiums.
Analysts said the market also faces oversupply pressures as global forecasts show supply outpacing demand this year. A build in US crude inventories and expectations that Venezuelan output could rise further have added to the bearish backdrop, tempering earlier gains.
Read more: Oil prices hold firm as US–Iran tensions support market
Traders will continue to monitor geopolitical developments and demand outlooks for additional direction. For now, the easing of conflict fears and hints of broader supply growth are keeping downward pressure on crude prices as markets adjust to evolving fundamentals.