West Texas Intermediate (WTI), the US crude oil benchmark, trades near $62.85 during Asian hours on Friday. Prices move lower after the United States and Iran confirmed plans to hold talks in Oman later in the day.
Iran is expected to center discussions on its long-running nuclear dispute with Western nations. Washington, meanwhile, wants broader negotiations that also cover Iran’s ballistic missile program, its alleged support for armed groups across the Middle East, and its domestic human rights record. Last month, US President Donald Trump warned that military action could be considered if Tehran fails to reach an agreement on its nuclear program. Markets remain focused on any headlines emerging from these talks.
Expectations that diplomatic efforts could reduce the risk of military confrontation have weighed on oil prices in the near term. However, uncertainty remains over whether a meaningful agreement can be achieved. Phil Flynn, senior analyst at Price Futures Group, noted that while markets are giving the talks a chance, doubts persist over their eventual outcome.
On the supply side, data from the US Energy Information Administration (EIA) showed a sharp drop in crude inventories. For the week ending January 30, US stockpiles fell by 3.455 million barrels, exceeding both the previous week’s decline of 2.296 million barrels and market expectations for a 2 million-barrel draw. This larger-than-expected decline may help cap further losses in WTI prices.
