Brent crude oil dropped to $61 per barrel on Friday, slipping slightly from Thursday as the market reacted to a mix of too much oil in storage and international drama. Over the past month, Brent has lost over 3% of its value, and compared to last year, it is down more than 18%.
The decline comes as global oil supplies have piled up, reaching levels not seen in four years. Simply put, there is more oil available than the world currently needs, which puts downward pressure on prices. While the Organization of the Petroleum Exporting Countries (OPEC) predicts supply and demand will balance in 2026, the current oversupply keeps traders cautious.
Geopolitical events added tension. The US intercepted a Venezuelan oil tanker that was under sanctions, a move Caracas called “piracy.” Venezuela, which holds the largest oil reserves in the world, exported about 586,000 barrels of oil daily last month, mainly to China.
In addition, Ukraine targeted another Russian-linked tanker, marking its fifth attack in a few weeks. These events create uncertainty because disruptions in oil shipments can affect prices worldwide.
Brent briefly rose to $61.50, but it is still on track for a weekly loss of over 3%, showing how global supply and political conflicts can push oil prices up or down.
