Oil prices eased on Friday in Asian trade after the Donald Trump administration loosened some sanctions tied to Venezuela’s energy sector, a move that could permit a portion of the South American nation’s crude to flow to market through U.S. entities.
Brent crude for March delivery fell 1.5% to $69.66 a barrel, while West Texas Intermediate futures lost 1.6% to $64.36 a barrel by 21:43 ET (02:43 GMT). Although both benchmarks retreated from near six-month highs, they stood on course for weekly gains in the range of 12% to 16% following supply concerns driven by tensions in the Middle East and severe winter weather in the United States. A significant production outage in Kazakhstan also contributed to recent upward pressure on crude.
Market participants continued to assess the risk of possible U.S. military action against Iran as a key geopolitical factor influencing prices. Attention was also focused on a weekend meeting of the Organization of Petroleum Exporting Countries and its allies (OPEC+), where members were widely expected to maintain current output settings.
Details of U.S. policy change on Venezuela
On Thursday the Trump administration removed restrictions on certain transactions involving Venezuela’s state-run oil company PDVSA. The modification permits U.S. entities to sell and transport oil from Venezuela, a step that appeared intended to encourage American business confidence in investing in the country. This action comes after Washington seized control of the country’s energy industry earlier in January, a move that had raised expectations -- among some market observers -- that Venezuelan supplies could expand if U.S. sanctions were eased.
However, the change stopped short of lifting sanctions on the production of Venezuelan oil. Analysts cautioned that any meaningful increase in Venezuela’s output would likely take time because of ageing energy infrastructure and heightened political uncertainty after the U.S. capture of President Nicolas Maduro.
OPEC+ meeting and production dynamics
OPEC+ is scheduled to convene on Sunday. Recent reporting suggested the cartel is likely to keep its output unchanged. Earlier, the group had increased production by roughly 2.9 million barrels per day through 2025, a policy that exerted downward pressure on prices. In response to concerns about a potential supply glut and weakening global demand, OPEC+ paused its planned monthly increases beginning in January.
In a monthly market report released earlier in January, the OPEC+ forecast indicated that oil demand would improve in 2026 and 2027, and the group sought to play down worries about an oversupplied market.
For now, prices are balancing several countervailing influences: the partial easing of U.S. sanctions on Venezuelan oil transactions, ongoing geopolitical risk in the Middle East, recent severe weather in the United States, and an anticipated OPEC+ decision to hold output steady. Market participants will be watching how quickly Venezuelan shipments might return and whether OPEC+ member decisions alter the outlook for supply and demand in coming months.