Oil prices experienced a dip on Friday, February 27, 2026, as the United States and Iran prolonged nuclear talks, alleviating concerns over potential supply disruptions. This development occurred while OPEC+ contemplates resuming output increases at their upcoming meeting on Sunday.

Market data indicated that Brent crude futures edged down by 5 cents to $70.70 per barrel as of 0331 GMT. Concurrently, U.S. West Texas Intermediate (WTI) saw a decrease of 1 cent, settling at $65.20.

For the week, Brent was poised for a 1.8% decline, while WTI was on track to fall approximately 2.2%, reversing a portion of the gains from the previous week.

The oil markets reacted to the ongoing diplomatic engagement between Washington and Tehran, especially with production policy decisions looming from OPEC+.

The week's price volatility underscored the sensitivity of crude benchmarks to geopolitical news. Initial gains of over $1 per barrel during Thursday’s session, spurred by reports suggesting stalled talks, were later tempered as mediators signaled progress.

The United States and Iran engaged in indirect discussions in Geneva on Thursday, aiming to resolve their protracted nuclear dispute and prevent further regional escalation. Prices initially spiked due to fears that stalled talks could trigger hostilities impacting oil flows.

However, Oman’s Foreign Minister, Sayyid Badr Albusaidi, indicated progress on both sides and anticipated a resumption of technical-level discussions next week in Vienna.

In a parallel development, the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, are expected to consider raising output by 137,000 barrels per day for April at their March 1 meeting, following a pause in production increases during the first quarter.

Nigeria’s crude oil benchmarks remain above the Federal Government’s 2026 budget assumption despite the recent dip.

Actual production in January 2025 stood at about 1.48 million barrels per day, slightly below the OPEC+ quota of 1.5 million barrels per day.

The combined effect of higher domestic refining capacity, renewed upstream investment efforts, and evolving global supply dynamics will shape Nigeria’s fiscal outlook in the months ahead.