Global oil prices declined on Friday after the United States relaxed sanctions on Venezuela’s crude oil exports, easing near-term supply concerns following a strong rally in the previous session.
Brent crude fell by 1.7% to trade at $68.32 per barrel, down from $69.54 at the prior close. Meanwhile, US benchmark West Texas Intermediate (WTI) declined 1.9% to $64.02 per barrel, compared with $65.25 in the previous trading session.
The pullback followed Washington’s decision to partially lift restrictions on Venezuela’s state-owned oil company, Petroleos de Venezuela SA (PDVSA). The easing allows specific transactions related to the sale and transportation of Venezuelan-origin crude, increasing potential supply to the global market.
The policy shift came a day after oil prices surged to their highest levels in nearly six months, driven by concerns over a possible US military intervention against Iran and supply disruptions caused by severe cold weather across parts of the United States.
Adding to the supply-side optimism, Venezuela’s National Assembly unanimously approved a draft reform of the Organic Law on Hydrocarbons. The proposed changes are aimed at encouraging greater foreign participation in the country’s oil sector.
US President Donald Trump also announced during the first Cabinet meeting of 2026 at the White House that Venezuela’s airspace would be reopened to commercial flights. Trump further disclosed that major US oil companies had already begun traveling to Venezuela to assess potential project sites.
These developments helped alleviate concerns over tight global oil supply, placing downward pressure on prices during Friday’s trading session.
Despite the retreat, oil prices remain relatively elevated, as markets continue to monitor geopolitical risks, particularly the possibility of US military action against Iran. Attention is also focused on the upcoming meeting of the Organization of Petroleum Exporting Countries and its allies, collectively known as OPEC+.
The eight OPEC+ member countries are scheduled to meet on Sunday, with no changes to current production levels widely expected.
