LONDON, Feb 6 (Reuters): Oil prices held steady on Friday as investors awaited news from high-stakes talks between the United States and Iran that are taking place in Oman amid fears of another supply-disrupting Middle East conflict.
Brent crude futures rose 7 cents, or 0.1 per cent, to $67.62 a barrel by 1055 GMT, while US West Texas Intermediate crude was also up 7 cents, or 0.1 per cent, at $63.36 a barrel.
Still, Brent was set to end the week 4.3 per cent down, as WTI was on track to end the week little changed.
"Investors are watching the US-Iran talks, and their sentiment is shaped by the outcome of these talks," said Tamas Varga, an oil analyst at brokerage PVM.
The market is waiting for the outcome of these negotiations, he said.
Lack of consensus on the agenda for the meeting between Iran and the United States has kept investors anxious about geopolitical risk.
Iran wants to stick to nuclear issues, while the United States wants to discuss Iran's ballistic missiles and support for armed groups in the region.
Any escalation of tension between the two nations could disrupt oil flows, since about a fifth of the world's total consumption passes through the Strait of Hormuz between Oman and Iran.
Saudi Arabia, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, as does fellow OPEC member Iran.
If the US-Iran talks ease the prospect of conflict in the region, oil prices could decline further.
