Oil prices edge lower with Venezuela supply reports, Hormuz deal in focus

Oil prices dipped slightly on Friday as traders analyzed reports of U.S. efforts to gain access to Venezuela’s oil reserves, alongside concerns over the U.S.-Iran situation in the Strait of Hormuz. Reports suggested Venezuela might exit the Organization of Petroleum Exporting Countries (OPEC), coinciding with closer ties to Washington.

Brent oil futures slipped 0.4% to $89.33 per barrel, while West Texas Intermediate (WTI) crude futures fell 0.3% to $83.25 per barrel. Both contracts were expected to experience losses of 4% to 5.5% this week, despite a strong rebound on Thursday. The Trump administration is reportedly close to a deal to secure a portion of Venezuela’s vast crude reserves, potentially allowing American companies to develop the oilfields.

However, analysts cautioned that any supply increase would take considerable time due to the extensive development needed in Venezuela’s oil infrastructure. Meanwhile, Venezuela is reportedly considering leaving OPEC, which would be its second major exit after the United Arab Emirates. This potential exit, coupled with reports of Iran and Oman potentially reopening the Strait of Hormuz, contributed to the mixed signals impacting oil prices.