Brent crude ends over 2% lower, posts weekly rise

Oil drilling rigs

Oil prices closed lower on Friday as negotiations between European countries and Iran started, while new US sanctions on Tehran raised the likelihood of a diplomatic settlement with Washington over its nuclear program.

Brent crude futures for August delivery fell by 2.33%, or $1.84, to $77.01 a barrel. Despite the daily loss, Brent crude posted a weekly gain of 3.74%.

US WTI crude futures for July delivery — which expired today — edged down by 0.28%, or 21 cents, to $74.93 a barrel, but recorded a weekly gain of 2.70%.

The more actively traded August WTI contract dropped by 0.46%, or 34 cents, to settle at $73.84 a barrel.

European countries and Iran launched a new round of talks in Switzerland on Friday, focused on Tehran's nuclear program and ways to resolve its ongoing military conflict with Israel.

Meanwhile, the US Treasury Department announced sanctions targeting Iran-linked entities under counterterrorism measures, increasing pressure on Tehran and boosting speculation it may return to negotiations with Washington.

Losses in oil prices were limited by a report from Baker Hughes showing a decline in the US oil rig count for the eighth consecutive week — a signal of potentially lower crude supply from the US.