Oil Futures Extend Weekly Losses as U.S.-Iran Talks Weigh

At about 11:20 a.m. ET, December West Texas Intermediate crude was down 7 cents at $90.45 a barrel, while January WTI fell 11 cents to $89.09. Brent posted steeper losses: January futures dropped 76 cents to $97.53 a barrel, and February was down 27 cents to $94.64.

Ultra-low-sulfur diesel futures fell more sharply on the day. The December contract lost 3.41 cents to $4.3120 a gallon, and January declined 3.74 cents to $4.2092. ULSD was down about 36 cents a gallon for the week. RBOB gasoline futures eased slightly Friday, with December down 0.25 cent to $2.7609 a gallon and January off 0.15 cent to $2.7148. Weekly losses were about 39 cents.

Prices have fallen throughout the week amid indications that U.S. and Iranian leaders are open to restarting negotiations to end the eight-month-old war. Democrats’ victories in both chambers of Congress were also seen as increasing pressure to end the fighting.

“Oil's decline was driven by expectations of progress in U.S.-Iran talks,” said Linh Tran, a market analyst at XS.com. The election results reinforced expectations that Washington would pursue a diplomatic solution, she said, but the prospect of progress “has yet to materialize.” Tran added that prices could rebound if incidents threaten deliveries, as shipping safety remains uncertain.

The futures decline has brought some relief at the pump. The national average gasoline price was $4.0688 a gallon Friday, nearly 14 cents below a week earlier, and could fall below $4 in the coming week for the first time since mid-July. Diesel averaged $6.2305 a gallon Friday morning, about 9 cents lower on the week and its lowest level since mid-September.