Despite ongoing political and economic uncertainties influencing the global oil market, oil prices have risen for the second consecutive week.
According to a Reuters report, oil prices fell during Friday’s trading session, driven by efforts from eight key OPEC+ members to accelerate the review of voluntary output cuts and expectations around a potential nuclear deal with Iran. However, easing tensions between China and the United States helped maintain an overall upward trend in oil benchmarks.
As of 08:21 GMT, Brent crude was down 29 cents at $64.24 per barrel, while U.S. West Texas Intermediate (WTI) fell 30 cents to $61.32 per barrel.
In the previous trading session, both oil benchmarks declined by over 2%, primarily due to speculation over a possible nuclear agreement with Iran.
Impact of Iran and the Asian Market
Harry Tchilinguirian, Head of Market Analysis at Onyx Capital, commented on the current situation: “The oil market still shows growth potential, but the positive effect of reduced U.S.-China trade tensions is gradually fading.”
He added that some OPEC+ countries are attempting to stabilize the market by speeding up adjustments to their output cuts. Meanwhile, ongoing negotiations between Iran and the U.S. could pave the way for Iranian oil to re-enter the Asian market, particularly in China.
Sanctions Relief: Opportunity or Threat?
Analysts at ING have warned that if sanctions on Iran are lifted, the country could ramp up oil production and attract new buyers — a development that could result in an additional 400,000 barrels per day entering the market.
Despite this potential increase in supply, Brent crude gained about 1% over the past week, while WTI rose approximately 0.5%.
