Oil Prices Swing , OPEC Sees Broadly Balanced Demand, Supply
Oil prices rose on Friday amidst an anticipated equilibrium between global demand and supply in 2026, alongside geopolitical worries. The market recorded a sharp drop in crude oil prices on Thursday after the U.S. chose to refrain from attacking Iran. The market has begun to gain traction again.
Brent crude was trading at $64.21 per barrel, up 1.8% from the previous close of $63.08. US benchmark West Texas Intermediate (WTI) also increased by around 2.1% to $60.09, compared to $58.86 in the prior session.
Market sentiment improved after reports that Israel and several Arab partners urged US President Donald Trump to delay any military action against Iran, warning that a strike could spark a broader regional conflict.
The New York Times reported on Thursday, citing senior US and regional officials, that Israeli Prime Minister Benjamin Netanyahu asked Trump during a Wednesday phone call to postpone any planned action, as Iran continues to face nationwide protests.
The same day, Trump said he had received information from “very important sources on the other side” indicating that Iranian authorities had paused executions and stopped killing protesters, though US officials cautioned that military options remain under review.
The developments eased fears that Iran-related tensions could disrupt oil production or key shipping routes such as the Strait of Hormuz, supporting prices after earlier volatility.
Experts said potential political turmoil in Iran could heighten volatility in oil markets, warning that the risk of supply disruptions may trigger price swings.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) said that global oil supply and demand are expected to remain broadly balanced in 2026, with demand growth continuing at a similar pace in 2027.
In a separate development, Trump said Wednesday that he spoke with Venezuela’s interim president, Delcy Rodríguez, describing her as a “terrific person” and signalling improved relations following the Jan. 3 military operation that led to the capture of President Nicolas Maduro.
Trump later said on Truth Social that “tremendous progress” had been made as the U.S. supports Venezuela’s stabilisation and recovery.
Oil prices settled down around 4% on Thursday, ending a five-day streak of gains after U.S. President Donald Trump said the crackdown on protesters in Iran was easing, allaying concerns over potential military action against Iran and oil supply disruptions.
Brent futures settled down $2.76, or 4.15%, at $63.76 a barrel. U.S. West Texas Intermediate crude fell $2.83, or 4.56%, to $59.19. Naira Drops as Foreign Payments Surpass U.S. Dollar Volume
