Washington, DC – Oil prices rose by about 3% on Friday as markets awaited the outcome of nuclear talks between the United States and Iran and worried about potential supply disruptions. Brent crude futures climbed $2.13 to $72.88 a barrel, while West Texas Intermediate crude rose $2.31 to $67.52 a barrel, according to trading data reported by Reuters.
Highest levels since the summer
Brent and West Texas Intermediate crude are trading at their highest levels since July and August, respectively. Brent is on track for weekly gains of around 1.6%, while WTI is poised for about 1.7%, supported by geopolitical uncertainty.
Impact of nuclear talks
The price movements coincided with indirect talks between Washington and Tehran in Geneva, following US President Donald Trump’s decision to bolster the military presence in the region. Reports of stalled negotiations over the uranium enrichment issue triggered a surge of over a dollar per barrel, before prices partially retreated after Oman announced progress in the consultations.
Omani Foreign Minister Badr al-Busaidi confirmed that the two sides would resume technical-level talks next week in Vienna. This kept the markets in a state of anticipation.
Expected production moves
In this context, sources indicated that Saudi Arabia is considering increasing its oil production and exports as part of a contingency plan in anticipation of any disruptions. The OPEC+ alliance is also expected to discuss increasing production by approximately 137,000 barrels per day at its upcoming meeting in early March. This follows the suspension of previous production increases in the first quarter of the year.
Markets remain contingent on developments in the diplomatic process, amid warnings that any potential escalation could quickly impact global price movements.
