Oil prices recorded their first consecutive weekly drop this year, as market participants balanced the possibility of increased supplies from OPEC+ against ongoing US-Iran nuclear talks and broader market softness.
West Texas Intermediate crude ended the week down about 1%, closing Friday’s session with little change. The market remained attentive to geopolitical developments after a statement from the White House indicated an additional aircraft carrier had been sent to the Middle East as a contingency should nuclear negotiations with Iran fail. The same official expressed optimism that the talks would ultimately succeed. Traders are closely monitoring any escalation in tensions that could threaten crude supplies from the key producing region.
Earlier pressure on prices came from reports that OPEC+ members are considering resuming output increases as soon as April. According to delegates, the group believes fears of a supply glut are exaggerated. However, no formal decisions have been made, and official discussions ahead of a scheduled meeting have not yet begun.
This second weekly decline interrupts a sustained rally from earlier in the year, which was fueled in part by recurring geopolitical tensions. Meanwhile, attendees at a recent energy conference noted expectations for global supplies to outpace demand in the coming year, potentially leading to higher inventories in the key Atlantic basin. So far, these concerns have been tempered by significant supply disruptions and the impact of sanctions on some oil exports.
Trading activity was also influenced by the approaching Presidents’ Day holiday in the United States, with thinner volume potentially contributing to more pronounced price movements.