Oil prices exhibited minimal variation on Friday following a decline in the preceding session, positioning themselves for a second consecutive weekly decrease. This trend is attributed to diminishing worries regarding a potential conflict involving Iran that could disrupt supply, alongside projections indicating that supply will surpass demand this year. Brent crude oil futures experienced an increase of 3 cents, translating to a 0.04% rise, reaching $67.55 a barrel at 0205, following a decline of 2.7% in the preceding session. U.S. West Texas Intermediate crude increased by 1 cent, or 0.02%, to $62.85 following a decline of 2.8%.

Brent prices are projected to decline by 0.8% this week, whereas WTI is anticipated to decrease by 1.1%. Prices increased earlier this week due to concerns regarding a potential U.S. attack on the significant Middle Eastern producer Iran in relation to its nuclear program. However, remarks made on Thursday by U.S. President Donald Trump, suggesting that a deal with Iran could be reached within the next month, led to a decline in prices during the previous session. Oil prices are lower, reflecting indications that the U.S. is pursuing additional time to finalize a nuclear agreement with Iran, which in turn diminishes the immediate geopolitical risk premium, according to analyst Tony Sycamore in a note. Alongside the diminishing worries regarding a conflict with Iran, the International Energy Agency on Thursday indicated in its monthly report that global oil demand growth for this year will be less robust than earlier forecasts, with total supply anticipated to surpass demand.

Thursday’s decline was exacerbated by prior data indicating a significant increase in U.S. crude inventories and rising expectations that augmented Venezuelan supply may soon enter the market, according to Sycamore. There is an expectation that Venezuelan oil supply will return to pre-blockade levels in the months ahead, rising from 880,000 barrels per day to about 1.2 million bpd.

This week, the U.S. Treasury is set to issue additional allowances that will relax sanctions on Venezuelan energy, according to a statement from a White House energy official on Thursday. U.S. Secretary of Energy Chris Wright stated on Thursday that oil sales from Venezuela, under U.S. control, have exceeded $1 billion since the capture of President Nicolas Maduro in January, with an anticipated additional $5 billion in the coming months.