Oil gains ahead of Iran-US talks despite weekly losses
Oil prices edged higher on Friday ahead of planned talks between Iran and the United States, after Tehran signaled that there would be no quick resolution to escalating tensions between the two sides.
Brent crude climbed toward $69 a barrel after falling 2.8% on Thursday, while West Texas Intermediate traded above $64, News.Az reports, citing Bloomberg.
Oil futures turned higher after Iranian media reported that the talks would be slightly delayed and would focus on “broad topics” rather than narrower technical issues.
According to the state news agency IRNA, Iran’s main priorities include “assessing the other side’s goodwill and seriousness.” The report added that “the road map for negotiations appears set to become clearer once this round concludes.”
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Despite Friday’s gains, oil remains on track for its first weekly decline since mid-December, reflecting a partial unwinding of the risk premium built up amid heightened tensions in the Middle East, a region that accounts for roughly a third of global crude supply. Still, differing positions over the scope and conditions of US-Iran negotiations have left it uncertain whether the two sides can bridge major gaps, meaning the talks are likely to continue weighing on markets already facing signs of physical oversupply.
In a separate development, Saudi Arabia cut oil prices for Asian buyers by less than expected, signaling confidence in demand for its crude. Even so, the reductions pushed prices to their lowest levels since late 2020.
Geopolitical developments elsewhere also drew attention. In trilateral talks involving the United States, Ukraine and Russia agreed to exchange prisoners for the first time in five months as part of efforts to end their four-year conflict. Progress was being made, with results expected “in the coming weeks,” according to a special envoy for U.S. President Donald Trump.
Meanwhile, BP is seeking a partner to help boost output and share costs at Iraq’s Kirkuk oil field, one of the oldest producing fields in the Middle East. Crude deposits in the OPEC member state are often cheaper and easier to develop than those outside the region, making them attractive amid ongoing supply and cost pressures.
By Nijat Babayev
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