FX.co ★ Oil Set for First Weekly Decline in Six

WTI crude oil futures declined by over 1%, settling around $62.5 per barrel on Friday, thereby continuing the downward trend from the previous session. This marks the first weekly drop in six weeks, as market focus shifted to the anticipated discussions between Iran and the United States scheduled for later in the day. Iran's confirmation that these negotiations would proceed has somewhat alleviated immediate concerns regarding military conflict and potential disruptions in supply from this key OPEC member, which is responsible for nearly one-third of global crude production. Nonetheless, varying perspectives on the negotiations' scope raise questions about whether significant differences can be resolved. Concurrently, Saudi Arabia reduced the price of its primary crude grade sold to Asia to the lowest point since late 2020, indicating an oversupply situation. However, the less-than-expected price cut may reflect confidence in sustained demand. Additionally, market participants are closely observing the situation in Russia and Ukraine, following recent attacks on Ukraine's energy infrastructure, even as the United States and Russia make efforts to resume high-level military communications.