Oil prices are on their way to a second consecutive weekly decline as concerns about a potential US-Iran conflict ease
Trump said the US could strike a deal with Iran next month. Oil prices fell on Friday, heading for a second weekly drop as concerns about a US-Iran conflict that could impact supply subsided.
In addition to diminishing concerns about a conflict with Iran, the International Energy Agency (EIA) projected in its monthly report on Thursday that global oil demand growth this year will be weaker than previously expected, with overall supply exceeding demand.
Brent crude futures fell 6 cents, or 0.1%, to $67.46 a barrel at 04:48 GMT, following a 2.7% drop in the previous session. WTI fell 12 cents, or 0.2%, to $62.72 after a 2.8% decline.
Brent prices are expected to fall 0.8% this week, while WTI is expected to fall 1.1%.
Earlier this week, prices had risen on concerns that the US might attack Iran over its nuclear program, but Thursday's comments from US President Donald Trump suggesting the US could reach an agreement with Iran next month brought prices down in the previous session.
However, it's noteworthy that prices didn't fall significantly despite the bearish news, suggesting a slowdown in the short-term downward momentum.
Thursday's decline was further fueled by earlier data showing a large increase in US crude oil inventories and growing expectations that increased Venezuelan supply could soon enter the market.
The US Treasury Department said this week it would authorize more supplies for Venezuela. Venezuelan oil supply is expected to return to pre-blockade levels in the coming months, rising from approximately 880,000 barrels per day to around 1.2 million barrels per day.
US Energy Secretary Chris Wright said on Thursday that oil sales from US-controlled Venezuela have exceeded $1 billion since the capture of President Nicolas Maduro in January and are expected to bring in another $5 billion in the coming months.
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