US crude futures continued their downward trend on Friday, poised for their first weekly decline in several weeks, as worries regarding supply disruptions in the Middle East diminished, with investors turning their attention to the anticipated results of U.S.-Iran nuclear discussions in Oman later in the day. Brent crude futures experienced a decline of 50 cents, equivalent to 0.74%, bringing the price to $67.05 a barrel at 0102, following a 2.75% decrease in the prior session.

U.S. West Texas Intermediate crude traded at $62.77 per barrel, reflecting a decline of 52 cents or 0.82%, following a closing drop of 2.84% on Thursday. The benchmarks are on track for their initial weekly decline in over a month, having decreased by more than 3% from the near six-month peaks attained in late January, coinciding with U.S. President Donald Trump’s threats to strike Iran. Both countries have reached an agreement to engage in discussions in Oman on Friday, in the context of increasing tensions as the U.S. enhances its military presence in the Middle East.

Regional stakeholders are actively pursuing measures to prevent a military confrontation that could potentially escalate into a broader conflict. Approximately 20% of global oil consumption transits the Strait of Hormuz, situated between Oman and Iran. Other OPEC members, including Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq, export the majority of their crude through the strait, as does Iran.

According to analysts, the rising geopolitical tensions between the U.S. and Iran have led to an increase in oil prices. However, it is anticipated that geopolitical concerns will yield to lackluster fundamentals, as indicated by a rebound in Kazakhstan’s oil production, which is expected to drive oil prices down to approximately $50 per barrel by the end of 2026.