London, February 6, 2026, 11:23 GMT — Trading during regular hours.
- Brent rose 7 cents to $67.62, while WTI also gained 7 cents, reaching $63.36 in late morning trading
- Traders eye U.S.-Iran negotiations in Oman, seeking signals on Middle East supply risks
- Brent is poised for a weekly decline, with weaker fundamentals weighing down prices despite ongoing geopolitical tensions
Oil prices hovered near unchanged on Friday, with Brent crude inching higher by 7 cents to $67.62 a barrel at 1055 GMT. U.S. WTI also gained 7 cents, trading at $63.36. The market remained on edge ahead of U.S.-Iran discussions in Oman. 1
This is crucial now as talks hover over an already fragile risk premium in crude. Any flare-up between Washington and Tehran could jeopardize shipments through the Strait of Hormuz, the narrow passage handling about 20% of the world’s oil demand.
But the tape is also wrestling with something more basic: supply and demand. Traders have been selling into rallies, betting that the market is flush with supply, even as geopolitical tensions prevent prices from dropping sharply.
Friday’s quiet came after a steep drop the day before. On Thursday, Brent lost $1.91, or 2.75%, closing at $67.55, while WTI fell $1.85, or 2.84%, to $63.29. The slide followed news that both sides would meet in Oman, easing immediate fears over Iranian supply. Phil Flynn, senior analyst at Price Futures Group, noted the market is still “giving talks the benefit of the doubt,” but cautioned, “we still don’t know what the outcome will be.” 2
Tamas Varga at PVM noted that sentiment “is shaped by the outcome of these talks,” as traders watch closely for clues on whether the discussions will ease or escalate the broader standoff. The agenda remains a sore spot: Iran insists on focusing solely on nuclear issues, while the U.S. pushes for a wider debate covering missiles and Iran’s backing of armed groups.
Some analysts argue the geopolitical rally will vanish if diplomacy prevails. Capital Economics noted that “geopolitical fears will give way to weak fundamentals,” pointing to a rebound in Kazakhstan’s oil production as a key reason prices could drop later this year.
Saudi Arabia’s pricing moves weighed on fundamentals again. Aramco pegged the March official selling price for Arab Light crude to Asia at parity with the Oman/Dubai benchmark, sliding from a 30-cent-a-barrel premium in February, according to a Zawya report citing an Aramco statement and Reuters data. 3
On Thursday, certain analysts noted that geopolitics continue to support the market despite falling prices. Muyu Xu from Kpler told Reuters the tension over Iran “will keep a floor around $65” for crude, in a market that’s been rattled by every fresh headline. 4
The risk runs both ways. A softer report from Oman might erase the risk premium, pushing crude prices down amid supply-heavy signals like Saudi price cuts. But any disruption or spike in tensions along shipping lanes could quickly send prices soaring.
