The US and Iran agree to continue negotiations, Venezuela's crude oil sales attract attention, and oil prices fall.

LootboxPhobia · 2026-02-27T05:44:25+00:00

On Friday Asian trading hours, oil prices declined due to the lack of progress in US-Iran nuclear negotiations and a slowdown in Venezuela's crude oil sales growth. Brent crude fell by 0.4%, and WTI dropped by 0.5%. The impact of geopolitical tensions on oil prices has weakened, with increased supply and weak demand becoming the main concerns. Analysts say that the situation in the Strait of Hormuz is key, and it is expected that future oil prices will be under pressure from increased Venezuelan supply.

LootboxPhobia

2026-02-27 05:44:25

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Investing.com - Oil prices fell during Friday’s Asian trading session after the US and Iran agreed to extend discussions on Tehran’s nuclear program. Meanwhile, markets are also watching the impact of increased Venezuelan oil sales.

As of 20:15 Eastern Time (01:15 Beijing Time), Brent crude futures for April declined 0.4% to $70.48 per barrel, and US WTI crude futures fell 0.5% to $64.92 per barrel.

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Both contracts saw slight declines in February, as supply risks from escalating geopolitical tensions were offset by signs of increased global supply and concerns over weak demand.

US-Iran negotiations concluded, technical discussions scheduled for next week

Negotiations between the US and Iran over Tehran’s nuclear ambitions ended on Thursday without a clear agreement.

However, both sides stated they would resume talks soon. Mediator Oman said technical discussions will also be held next week in Vienna.

Tensions with Iran were the main driver of oil prices in February, especially as the US amassed a large military presence in the Middle East and threatened action if Tehran did not accept an agreement.

ANZ Bank analysts stated in a report: “Based on the current state of peace negotiations, oil supply could be 10 million barrels per day lower or 1 million barrels per day higher than current levels.”

ANZ analysts added: “However, the focus is on the Strait of Hormuz. Unless oil supplies through this strait are continuously disrupted, prices may only see temporary increases.” They also noted that OPEC might release more output to offset supply disruptions.

The Strait of Hormuz is a critical shipping route in the Middle East, controlled by Iran along its northern coast. Any major conflict involving the country could disrupt shipping through this channel.

Venezuela oil sales to accelerate under US agreement

US officials announced on Thursday that, under a recent supply agreement with Venezuela, oil sales are expected to reach $2 billion by the end of February.

Earlier, Washington gained control of Venezuela’s oil industry at the start of the year after US forces detained President Nicolás Maduro.

Since then, Venezuela has increased domestic production, and global trading companies Vitol and Trafigura are selling most of the country’s oil. Buyers across Asia and Europe, including major oil consumer India, will receive Venezuelan oil in the coming weeks.

Venezuela’s return to the market marks a significant increase in global oil supply — a trend that could pressure crude prices in the coming months. Concerns over oversupply in 2026 have been a major factor weighing on oil prices in recent months.

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