Oil prices edged lower on Friday as signs of slowing global demand growth and lingering uncertainty over US-Iran relations weighed on market sentiment.
International benchmark Brent crude traded at $67.04 per barrel at 9.40 a.m. local time (0640 GMT), down 0.3% from the previous close of $67.24.
US benchmark West Texas Intermediate (WTI) fell 0.3% to $62.57 per barrel, compared with $62.76 in the previous session.
The International Energy Agency (IEA) has revised down its forecast for global oil demand growth in 2026 by around 83,000 barrels per day (bpd), citing seasonal weakness and a modest, economy-driven outlook.
Global oil demand is now expected to rise by about 849,000 bpd this year, reaching 104.87 million bpd, the agency said in its February Oil Market Report released on Thursday.
In its previous report, the IEA had projected demand growth of around 932,000 bpd, with total consumption reaching 104.98 million bpd.
According to the agency, the downgrade reflects seasonal weakness in consumption, as global oil demand fell by around 2.7 million bpd month on month in January, traditionally the annual low-point.
The weaker demand outlook helped ease concerns about a tightening supply balance, adding downward pressure on prices.
Meanwhile, uncertainty over the trajectory of US-Iran relations also weighed on prices, adding to the broader market pressure.
US President Donald Trump said Thursday that he expects an agreement with Iran to take shape during the next month, warning Tehran that failure to reach a consensus poses major dangers.
Asked by a reporter at the White House about the timeline he envisions for a deal to be ironed out, the US president said, "I guess over the next month, something like that, should happen quickly."
"We have to make a deal, otherwise, it's going to be very traumatic, very traumatic. I don't want that to happen, but we have to make a deal. They should have made a deal the first time. They got Midnight Hammer instead, and this will be very traumatic for Iran if they don't make a deal," he said, referring to US strikes on Iran's nuclear facilities last June.
"We had a very good meeting yesterday with Bibi Netanyahu, and he understands, but it's ultimately up to me. If the deal isn't a very fair deal and a very good deal with Iran, then it's going to be, I think, a very difficult time for them," he added.
Trump said shortly after the meeting concluded that "there was nothing definitive reached other than I insisted that negotiations with Iran continue to see whether or not a deal can be consummated."
Stepped-up diplomatic efforts between Washington and Tehran have added downward pressure to oil prices by raising expectations that the risk of supply disruptions in the Middle East, home to a significant share of global oil reserves, could ease. However, lingering uncertainty over the outcome of the talks has limited the decline.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
