Oil prices dipped on Friday, heading for a weekly decline as the United States and Iran extended nuclear talks, easing supply fears, while OPEC+ considers resuming output increases at Sunday’s meeting.
Market data showed Brent crude futures slipping 5 cents to $70.70 per barrel as of 0331 GMT, while U.S. West Texas Intermediate (WTI) fell 1 cent to $65.20.
For the week, Brent was heading for a 1.8% decline, while WTI was on track to fall about 2.2%, reversing part of the previous week’s gains.
What the data is saying
Oil markets reacted to renewed diplomatic engagement between Washington and Tehran, even as production policy decisions loom from OPEC+.
Price volatility during the week showed how sensitive crude benchmarks remain to geopolitical headlines.
- Brent crude fell to $70.70 per barrel, down 5 cents in early Friday trading.
- U.S. West Texas Intermediate traded at $65.20 per barrel, losing 1 cent.
- On a weekly basis, Brent was set to decline 1.8%, while WTI faced a 2.2% drop.
- Nigeria’s Bonny Light traded around $71 per barrel, down 0.7% from $72.3 on Monday.
The pullback followed initial gains of more than $1 per barrel during Thursday’s session after reports suggested the talks had stalled, before easing again as mediators signalled progress.
Get up to speed
The United States and Iran held indirect talks in Geneva on Thursday aimed at resolving their long-running nuclear dispute and preventing further escalation in the region.
- The diplomatic engagement followed a military build-up ordered by U.S. President Donald Trump, heightening earlier concerns about possible supply disruptions.
- Several reports indicated that negotiations faced hurdles over U.S. demands for zero uranium enrichment by Iran.
- Washington also reportedly insisted that Iran deliver all 60% enriched uranium to the United States.
Prices initially surged on fears that stalled talks could trigger hostilities affecting oil flows.
However, Oman’s Foreign Minister, Sayyid Badr Albusaidi, said both sides made progress and would resume technical-level discussions next week in Vienna.
In parallel, the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, are expected to consider raising output by 137,000 barrels per day for April at their March 1 meeting, after pausing production increases in the first quarter.
What you should know
Nigeria’s crude oil benchmarks remain above the Federal Government’s 2026 budget assumption despite the recent dip.
- Nairametrics reported that Nigerian crude recently traded above $70 per barrel, exceeding the government’s benchmark of $64.85 amid geopolitical tensions.
- The 2026 budget is based on a conservative oil price of $64.85 per barrel.
- The government has set an ambitious daily production target of 1.84 million barrels per day.
Actual production in January 2025 stood at about 1.48 million barrels per day, slightly below the OPEC+ quota of 1.5 million barrels per day.
- The Dangote Refinery, with a projected capacity of over 650,000 barrels per day in 2026, is expected to significantly alter Nigeria’s downstream landscape.
- In addition, the Federal Government launched a new licensing round in January 2026 covering 50 oil and gas blocks, targeting over $10 billion in fresh investments to develop previously untapped assets and inland basins.
The combined effect of higher domestic refining capacity, renewed upstream investment efforts, and evolving global supply dynamics will shape Nigeria’s fiscal outlook in the months ahead.
