WTI crude oil futures traded just below $63 per barrel on Friday, holding on to most of the nearly 3% loss posted in the previous session and setting up a second consecutive weekly decline, as concerns over persistent oversupply intensified.
The International Energy Agency reiterated that the oil market is likely to face a surplus of just over 3.7 million barrels per day in 2026, which would mark a record annual average glut. The agency also cut its global oil demand forecast for that year. In its monthly report, it noted that global inventories are set to expand in 2025 at the fastest pace since the onset of the Covid-19 pandemic in 2020.
On the geopolitical front, President Donald Trump said that negotiations with Iran could continue for as long as a month, reducing the immediate likelihood of military action that might disrupt oil supplies. For now, he is pursuing a diplomatic strategy aimed at constraining the country’s nuclear program.
Adding to the overall weakness, a broad selloff across financial markets further pressured crude prices.
