Oil Heads for Weekly Losses as Iran Risks Ease
Oil prices are poised to post back-to-back weekly declines for the first time this year, dragged down by risk-off sentiment in global markets, concerns about a crude oversupply, and the prospect of protracted US-Iran nuclear talks. West Texas Intermediate (WTI) held below $63/barrel after falling nearly 3% on Thursday, while Brent hovered above $67/barrel.
On the geopolitical front, US President Donald Trump said negotiations could last up to a month, indirectly reducing the likelihood of a military escalation in the near term—and therefore the risk of supply disruptions from the Middle East. For now, Washington's focus is said to be on diplomatic channels to curb Iran's nuclear ambitions, so the "tension premium" that previously supported oil prices is starting to erode.
Meanwhile, the International Energy Agency (IEA) reiterated the unfavorable fundamental picture for prices: the 2026 market is projected to have a surplus of around 3.73 million barrels per day (around 3.7 million bpd), and global inventories increased last year at the fastest pace since 2020. The combination of the projected surplus and the stockpiles has led market participants to unwind positions more quickly when global sentiment deteriorates.
In Asian trading, WTI for March delivery was recorded at around $62.81/barrel (stable) in Singapore morning, while Brent for April settlement weakened slightly, dropping 0.1% to around $67.45/barrel. If this weakening trend continues, the consecutive weekly declines risk breaking the winning streak that had formed in early 2026—which was previously supported by episodes of geopolitical tensions. (Asd)
Source: Bloomberg
