Oil prices settled lower on Friday, as optimism over Russia-Ukraine peace negotiations suggested potential relief from sanctions on Moscow, which could increase global energy supplies. Brent crude fell 28 cents (0.37%) to $74.74 per barrel, while WTI dropped 55 cents (0.77%) to $70.74. Despite the daily losses, Brent finished the week with a slight 0.11% gain, while WTI posted a 0.37% weekly decline.
Market sentiment was shaped by President Donald Trump’s directive for U.S. officials to begin talks on ending the Ukraine war, following separate peace discussions with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy. The International Energy Agency (IEA) noted that Russian oil exports could persist despite sanctions if alternative trading channels are found. Meanwhile, Trump also delayed the implementation of new reciprocal tariffs, giving markets some relief and providing support for oil prices.
Additional factors limiting losses included U.S. Treasury Secretary Scott Bessent’s remarks on the possibility of maximum economic pressure on Iran, which could tighten global crude supply. JPMorgan analysts reported that global oil demand surged to 103.4 million barrels per day (bpd), a 1.4 million bpd increase year-over-year, with improving demand for mobility and heating fuels.
On the supply side, U.S. energy firms increased oil and natural gas rigs for the third consecutive week, according to Baker Hughes, with the total rig count rising by two to 588 for the week ending February 14—a signal of potential higher future U.S. production.