RoydadNaft –  Oil prices remained almost unchanged on Friday but, following the previous day’s drop, are on track for a second consecutive weekly decline. The main reason for this fall is reduced concerns about a potential U.S.-Iran conflict and its impact on oil supply, combined with forecasts indicating that global supply will exceed demand this year.

According to Roydad Naft, Brent futures were down 6 cents, or 0.1%, at $67.46 at 04:48 GMT, after dropping 2.7% in the prior session. U.S. WTI crude fell 12 cents, or 0.2%, to $62.72, following a 2.8% decline in the previous session.

Brent prices are expected to decline about 0.8% this week, while WTI is projected to fall around 1.1%. Prices rose earlier in the week due to fears of a possible U.S. attack on Iran (over its nuclear program), but comments on Thursday from U.S. President Donald Trump — stating that a deal with Iran could be reached within the next month — caused prices to drop.

According to Tony Sycamore, an analyst at IG, oil prices have fallen because “there are signs that the U.S. is looking for more time to reach a nuclear agreement with Iran, which has reduced short-term geopolitical risk.”

In addition to easing concerns over conflict with Iran, the International Energy Agency (IEA) stated in its monthly report on Thursday that global oil demand growth this year will be lower than previously forecast, and overall supply will outpace demand.

Thursday’s price drop was amplified by earlier data showing a sharp increase in U.S. crude inventories, as well as expectations of more Venezuelan oil entering the market.

Sycamore noted: “Venezuelan oil supply is expected to return to pre-sanctions levels in the coming months,” rising from 880,000 barrels per day to around 1.2 million barrels per day.

A White House energy official announced on Thursday that the U.S. Treasury Department will issue additional licenses this week to further ease energy sanctions on Venezuela.

U.S. Energy Secretary Chris Wright also stated that since the arrest of Nicolás Maduro (Venezuela’s president) in January, Venezuelan oil sales under U.S. control have generated more than $1 billion in revenue, with another $5 billion expected in the coming months.