Crude prices extended their decline on Friday, on track as concerns about supply disruption in the Middle East eased with focus on the outcome of US-Iran nuclear talks in Oman later in the day.
The benchmarks are headed for their first weekly drop in more than a month, down more than 3% from near six-month highs reached in late January when Trump threatened to strike Iran.
The US and Iran have agreed to hold talks in Oman, even as they remain split over that negotiations must include Tehran's missile arsenal and nuclear programme.
Meanwhile, the rivalry between Saudi Arabia and the UAE has taken a violent turn. In Yemen, Southern secessionists backed by the UAE made dramatic advances in oil-rich areas – before being forced out by Saudi-backed forces.
Russian Deputy Prime Minister said on Tuesday that demand would be gradually rising in the next months with the summer driving season, when asked about the OPEC+ group's plans on its production policy.
US crude stocks and distillate inventories fell while gasoline inventories rose in the week ending 30 Jan, the EIA said. Figures came in lower than expected, signalling resilient demand.
Brent crude is expected to stay muted before the talk begins. If its consolidation continues for a while, the price will ease moderately to $67 first.
Asset recap
As of market close on 5 February, among EBC major products, Equifax shares led gains after a report showing Q4 revenue growth of 9% amid cooling US employment and mortgage market.
Qualcomm suffered heavy sell-off as it issued disappointing guidance as skyrocketing demand for AI data centres eats away at memory chip supply for consumer electronics.
Gold also slumped, triggered by investors retreating from the recent surge into hard assets. Analysts say precious metals remain unstable following last Friday's wild swing.
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