Oil prices drifted on Friday but were poised for a second consecutive weekly decline, pressured by fading geopolitical risk and forecasts of a global oil supply surplus in 2026.
Brent crude futures traded around $67.5 per barrel, while U.S. West Texas Intermediate (WTI) held about $62.8, each rebounding slightly after sharp losses the day before. Both benchmarks were tracking lower on the week, with Brent down roughly 0.8% and WTI around 1.1%.
Market sentiment shifted as U.S. President Donald Trump indicated that Washington and Tehran could reach a diplomatic understanding within weeks, reducing the near‑term likelihood of a U.S.–Iran conflict that might disrupt crude flows from the Middle East. This diminished the geopolitical premium that had supported prices earlier in the week.
Broader fundamentals added to downward pressure. The International Energy Agency (IEA) trimmed its 2026 global oil demand growth outlook and projected that supply will outpace demand this year, strengthening concerns of a market glut. At the same time, data showed a notable build‑up in U.S. crude inventories, which weighed further on prices.
Analysts also flagged expectations of increased Venezuelan oil supply after planned easing of U.S. sanctions on the country’s energy sector, which could add more barrels to global markets in the coming months.
Despite these bearish signals, the pace of price declines slowed toward the end of the week. Still, the combination of receding conflict fears and looming oversupply kept oil prices on the defensive heading into next week