US crude oil futures continued to decline on Friday as concerns over supply disruptions in the Middle East eased.
According to sources, Brent crude futures fell by 50 cents, or 0.74 percent, to 67.05 dollars per barrel, after closing 2.75 percent lower in the previous session. US West Texas Intermediate crude dropped by 52 cents, or 0.82 percent, to 62.77 dollars per barrel, after ending Thursday down 2.84 percent.
Both benchmarks are heading for their first weekly decline in more than a month and are trading more than 3 percent below their late January levels, which marked a six month high after US President Donald Trump threatened to attack Iran.
Sources said the United States and Iran have agreed to hold talks in Oman on Friday, while regional players are trying to avoid a military confrontation amid rising tensions in the Middle East. It is worth noting that about one fifth of the world’s total oil supply passes through the narrow Strait of Hormuz between Oman and Iran. Other OPEC members, including Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq, also export most of their crude oil through this route, as does Iran.
Sources also pointed to a recovery in Kazakhstan’s oil production, claiming this could push oil prices down to around 50 dollars per barrel by the end of 2026.
