PERTH: Oil prices were flat on Friday with both Brent and U.S. West Texas Intermediate moving only a few cents from their closing prices after the likelihood of a U.S. strike on Iran receded.
Brent was down 3 cents, or 0.05%, to $63.73 per barrel, while U.S. West Texas Intermediate was up 4 cents, or 0.07%, to $59.22 per barrel as of 0223 GMT.
Both Brent and WTI rose to multi-month highs this week after protests flared up in Iran and U.S. President Donald Trump signalled the potential for strikes on the nation.
Late on Thursday, however, President Trump said Tehran's crackdown on the protesters was easing, allaying worries over possible military action that could disrupt oil supplies.
The U.S. Energy Information Administration's report this week that American crude and gasoline inventories had risen by more than analysts had estimated also dampened the market.
"This prompted a swift unwind of the 'Iran premium' that had propelled prices to twelve-week highs, compounded by the latest U.S. inventory data showing a substantial crude build," IG analyst Tony Sycamore said in a note.
Sources also told Reuters that Venezuela had begun reversing its production cuts and resumed exports.
Oil giant Shell released its 2026 Energy Security Scenarios on Thursday with a bullish case for energy demand and oil growth. The company estimated that primary energy demand by 2050 could be 25% higher than last year.
Producer organisation OPEC said on Wednesday that oil supply and demand will remain balanced in 2026, with demand rising in 2027 at a similar pace to growth for this year. - Reuters
