Market Overview

Oil prices edged lower on Friday as traders digested two parallel developments: reports that the United States is nearing a deal to secure long‑term access to a portion of Venezuela’s crude reserves, and mixed signals from the United States‑Iran standoff over the Strait of Hormuz.

Price Movements

By 20:41 ET (00:41 GMT), Brent crude futures slipped 0.3% to $89.45 a barrel, while West Texas Intermediate (WTI) futures fell 0.2% to $83.39 a barrel. Both contracts are projected to finish the week down between 4% and 5.5%, even though they rebounded strongly on Thursday.

U.S.–Venezuela Deal

Reuters reported that the Trump administration is close to finalising a long‑term agreement that would allow American companies to develop a group of Venezuelan oilfields. The arrangement would give the U.S. government secured access to a portion of Venezuela’s vast crude reserves, a move that follows Washington’s ouster of President Nicolás Maduro and its subsequent control of the country’s oil sector. Analysts caution that any tangible increase in supply will be delayed, given the extensive infrastructure upgrades required in Venezuela.

Venezuela’s OPEC Outlook

Separate reporting indicated that Caracas is weighing an exit from the Organization of Petroleum Exporting Countries (OPEC). Such a departure would constitute the second major exit for the producer group after the United Arab Emirates announced its own withdrawal.

Hormuz Developments

Iran and Oman announced an agreement to permit limited traffic through the Strait of Hormuz, a chokepoint that historically supplied roughly one‑fifth of global oil before the U.S.–Iran war. Iran also said it is preparing a list of conditions for a broader reopening of the waterway. The prospect of renewed flow through Hormuz initially weighed on crude prices.

U.S.–Iran Diplomatic Signals

The Wall Street Journal later reported that President Trump expressed no interest in reviving the June 2023 peace deal with Iran. Tehran has repeatedly urged the United States to honour the terms of that agreement, which officially lapsed in early August.

Weekly Outlook

Despite Thursday’s rebound, the market expects Brent and WTI to close the week with losses in the 4%‑5.5% range, reflecting the combined impact of potential Venezuelan supply additions, uncertainty over Hormuz traffic, and the stalled U.S.–Iran diplomatic process.