Market Overview

Oil prices edged lower on Friday, with Brent crude futures down 0.3% to $89.45 a barrel and West Texas Intermediate (WTI) futures down 0.2% to $83.39 a barrel as of 20:41 ET (00:41 GMT). Both benchmarks were on track for weekly declines of between 4% and 5.5% despite a strong rebound on Thursday.

U.S.–Venezuela Oil Access Deal

Reuters reported that the Trump administration is close to securing a long‑term agreement that would allow the United States to obtain a portion of Venezuela’s vast crude reserves. The pending deal, expected to be signed shortly, would enable the U.S. government to allocate a group of Venezuelan oilfields for development by American companies. This follows Washington’s ouster of former President Nicolás Maduro and its subsequent control of Venezuela’s oil sector. Analysts cautioned that any material increase in supply would be delayed, given the extensive infrastructure upgrades required in Venezuela’s oil fields.

Venezuela’s Potential OPEC Exit

Separate reporting indicated that Caracas is contemplating an exit from the Organization of the Petroleum Exporting Countries (OPEC). Such a move would represent the second major departure from the producer cartel, after the United Arab Emirates announced its own exit earlier in the year.

Strait of Hormuz Developments

Oil markets also reacted to mixed signals from the United States and Iran regarding the Strait of Hormuz. Iran and Oman reportedly agreed to permit limited traffic through the waterway, while Iran announced it is preparing a list of conditions for a broader reopening. The strait had supplied roughly one‑fifth of global oil flow before the U.S.–Iran conflict began. Crude prices trimmed some of their weekly losses on Thursday after the Wall Street Journal reported that President Trump showed no interest in reviving the June peace agreement with Iran, a deal that lapsed in early August.

Geopolitical Context

The combined effect of the prospective U.S. access to Venezuelan oil, Venezuela’s possible OPEC departure, and the uncertain status of Hormuz contributed to the modest decline in oil prices, reflecting market sensitivity to both supply‑side developments and geopolitical risk.