By Seher Dareen
LONDON, Jan 30 (Reuters) – Oil prices consolidated their recent gains and held near six- month highs on Friday, supported by concerns over the tensions between Iran and the U.S.
Brent crude futures were down 7 cents to $70.64 a barrel by 10:30 a.m. ET (1531 GMT). The March contract expires later on Friday. The more active April contract fell a cent to $69.58 a barrel.
U.S. West Texas Intermediate crude fell 3 cents to $65.39 a barrel.
Oil prices had hit their highest since early August on Thursday after multiple sources said U.S. President Donald Trump was weighing actions against Iran that included targeted strikes, raising concerns about supply disruptions.
Both the U.S. and Iran have since signalled willingness to engage in dialogue, but Tehran on Friday said its defence capabilities should not be included in any talks.
Meanwhile, the U.S., which has strengthened its military position in the Middle East in recent weeks, issued new sanctions targeting seven Iranian nationals and at least one entity.
Oil prices remained on track for their biggest monthly gains in several years. Brent crude was set for its biggest monthly jump since January 2022 and WTI was poised for its largest monthly gain since July 2023.
A rise in the dollar from four-year lows hit earlier in the week put some pressure on oil prices. Friday’s dollar strength followed Trump’s announcement that he would pick former Federal Reserve Governor Kevin Warsh to head the U.S. central bank when Jerome Powell’s term ends in May.
A stronger dollar can limit demand from oil buyers paying in other currencies.
“Rising U.S. crude oil output after shutdowns and Kazakhstan nearing the resumption of production at the Tengiz oilfield also contribute to the change in sentiment, and given the week’s bullish performance, it is reasonable to expect some profit-taking ahead of the weekend,” said PVM Oil Associate analyst Tamas Varga.
Meanwhile, peak maintenance periods for Russian primary oil refining this year are expected this month and in September, based on Reuters calculations using estimates from industry sources.
A Reuters poll of 32 analysts found that most expect prices to hold near $60 a barrel this year as the prospect of oversupply offsets potential disruption from geopolitical tensions. [O/POLL]
(Reporting by Seher DareenAdditional reporting by Shariq Khan, Stephanie Kelly in London and Florence Tan and Siyi Liu in SingaporeEditing by David Goodman and Jane Merriman)
