Blog Details

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.

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.

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.

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.

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.

Nigeria’s crude oil benchmarks remain above the Federal Government’s 2026 budget assumption despite the recent dip.

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 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.