Oil prices edged lower on Friday and were set to post a second consecutive weekly decline, as optimism over a potential Russia–Ukraine peace deal outweighed concerns about supply disruptions linked to Venezuela.
Brent crude fell 9 cents (0.2%) to $59.73 a barrel, while U.S. WTI slipped 13 cents (0.2%) to $56.02 by 0456 GMT. On a weekly basis, Brent was down 2.3%, and WTI declined 2.5%.
Sentiment was pressured after U.S. President Donald Trump said talks aimed at ending the Ukraine war were “getting close to something,” ahead of planned U.S.–Russia discussions this weekend. Expectations of a diplomatic breakthrough have eased fears of prolonged supply disruptions.
At the same time, uncertainty surrounds Washington’s plan to blockade sanctioned Venezuelan oil tankers. While Venezuela accounts for roughly 1% of global oil supply, markets remain unclear on how strictly the policy would be enforced. In a rare move, the U.S. Coast Guard seized a Venezuelan oil tanker last week.
“Uncertainty over enforcement details and optimism that a potential U.S.-led Ukraine peace deal could still emerge are easing global supply concerns and tempering geopolitical risk premiums,” said Tony Sycamore, market analyst at IG.
Analysts noted that additional measures targeting Russian oil would pose a far greater supply risk than the Venezuela tanker blockade. Adding to the mixed outlook, Venezuela has reportedly allowed two unsanctioned VLCCs to sail to China, according to sources familiar with its export operations.
Meanwhile, Bank of America analysts said lower oil prices could eventually curb supply, helping to prevent a sharper selloff.
From a technical perspective, Sycamore said a break above $56.70–$56.90 in WTI would suggest this week’s dip to $54.98 was a false downside break. Conversely, a drop below $54.98–$54.90 could revive bearish momentum, with prices potentially targeting the psychological $50 level.
