Oil prices moved lower in Asian trading on Friday after the United States and Iran agreed to keep negotiations ongoing over Tehran’s nuclear program, while investors also assessed the implications of increasing Venezuelan crude exports for global supply levels.
Brent crude futures for April delivery declined 0.4% to $70.48 per barrel, while U.S. West Texas Intermediate futures fell 0.5% to $64.92 per barrel as of 20:15 ET (01:15 GMT).
Both benchmarks were modestly lower for February overall, as geopolitical supply concerns were balanced by expectations of higher global output and mounting worries about softer demand.
U.S.–Iran talks end without breakthrough, technical discussions to follow
Negotiations between Washington and Tehran over Iran’s nuclear ambitions concluded Thursday without a finalized agreement.
Nevertheless, both parties indicated that discussions would continue, with mediator Oman confirming that technical-level talks are scheduled to take place next week in Vienna.
Developments involving Iran were a key influence on oil markets throughout February, particularly after the United States expanded its military presence in the Middle East and warned of potential action should diplomacy fail.
“Oil supply could be anywhere between 10mb/d lower or 1mb/d higher than current levels, depending on the outcome of current peace talks,” ANZ analysts said in a note.
“However, the Strait of Hormuz is the focus. Anything short of sustained disruption to oil supplies in that waterway would likely see only temporary rallies in the oil price,” ANZ analysts added, noting that the Organization of Petroleum Exporting Countries could increase production to counter any supply interruptions.
The Strait of Hormuz remains a critical global shipping route, with Iran controlling part of its northern shoreline. Any escalation involving the country could disrupt oil flows through the passage, which handles a substantial portion of worldwide crude shipments.
Venezuelan crude exports expected to increase under U.S. arrangement
Oil shipments under a recently agreed supply framework between the United States and Venezuela are projected to total about $2 billion by the end of February, according to U.S. officials.
The agreement follows Washington’s assumption of control over Venezuela’s oil export operations earlier this year after U.S. forces captured President Nicolás Maduro, enabling a ramp-up in production and exports.
Since then, Venezuela has increased domestic output, while major commodity traders including Vitol and Trafigura have taken leading roles in marketing the country’s crude. Buyers across Asia and Europe — including major importer India — are expected to receive Venezuelan cargoes in the coming weeks.
The re-entry of Venezuelan barrels into international markets represents a meaningful increase in global supply, a development that could place downward pressure on crude prices in the months ahead. Concerns about a potential oversupply in 2026 have already weighed on oil markets in recent months.
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