Oil traded slightly lower on Friday as traders weighed trade talk optimism and the potential of more oil supply from Venezuela.
Crude briefly flipped to positive earlier in the session after CNN said fresh penalties on Moscow may be announced in the coming days, potentially bolstering the risks to crude supplies in one of the world’s largest producers. US President Donald Trump said he’s considering new sanctions against Russia after large drone attacks on Ukraine in recent days.
Oil fell for a second day after President Donald Trump said the US and Iran are getting closer to a deal regarding Tehran’s nuclear program, a move that could unleash more supplies onto a market that is rapidly approaching a glut.
“Oil prices came under pressure in February as trade war uncertainty overshadowed sanctions-related supply risks,” ING’s commodities strategists Warren Patterson and Ewa Manthey said this week.