Brent crude futures edged lower on Friday, approaching $67 per barrel, extending a nearly 3% loss from Thursday and setting the stage for a second consecutive weekly decline. The market remains under pressure as persistent oversupply concerns weigh on sentiment.
The International Energy Agency (IEA) warned that global oil markets are likely to face a surplus of just over 3.7 million barrels per day in 2026, a record annual average glut. The agency also trimmed its global oil demand forecast for the year, while highlighting that inventories expanded in 2025 at the fastest pace since the 2020 pandemic.
Geopolitics offered little lift. President Donald Trump indicated that talks with Iran over its nuclear program could stretch on for a month, reducing the near-term risk of military action that might disrupt supplies. The US leader emphasized a diplomatic path aimed at constraining Iran’s nuclear ambitions.
Adding to the pressure, a broad selloff across global financial markets weighed on commodities, reinforcing the sense of caution among traders.
For now, Brent remains trapped between the twin forces of ample supply and subdued demand, leaving investors bracing for volatility as market participants weigh near-term fundamentals against longer-term geopolitical risks.
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