Oil prices increased on Friday as investors awaited news from high-stakes negotiations between the United States and Iran held in Oman. Concerns persisted that renewed conflict in the Middle East could disrupt supplies.
Brent crude futures for March delivery rose by $0.50, or 0.74%, settling at $68.05 per barrel.
West Texas Intermediate (WTI) crude futures for March delivery on the New York Mercantile Exchange climbed $0.26, or 0.41%, to close at $63.55 per barrel.
On Friday, Iran and the United States engaged in talks mediated by Oman in an effort to achieve a breakthrough regarding Tehran's nuclear program.
Iranian state television reported in the evening that the discussions had concluded. The Iranian foreign minister stated that negotiators would return to their respective capitals for consultations and that talks would continue.
Prior to the meeting, a lack of consensus on the agenda heightened investor anxiety over geopolitical risks. Iran insisted on focusing discussions on nuclear issues, while the United States sought to address Iran's ballistic missile program and its support for regional armed groups.
Any escalation of tensions between the two nations could disrupt oil shipments, as approximately one-fifth of global oil consumption passes through the Strait of Hormuz, located between Oman and Iran.
The majority of crude exports from Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq transit this strait, as does oil from Iran, another OPEC member.
Should the prospect of conflict in the region diminish, oil prices could face further declines.
However, four trading sources informed media outlets that Kazakhstan’s planned oil exports for this month via its primary route through Russia might drop by as much as 35%, as the country recovers slowly from a fire at power facilities in January.
Analysts noted that on a weekly basis, oil prices have been pressured by broad market sell-offs and persistent expectations of an oversupplied oil market.
Saudi Arabia reduced the official selling price of its Arab Light crude to Asia for March to its lowest level in about five years, marking the fourth consecutive monthly price cut.
"The underlying fundamental backdrop is not encouraging; it points to a market in surplus," said Tamas Varga, an analyst at PVM.