Oil prices were little changed during Asian trading on Friday but remain on track for a second straight weekly decline, with persistent concerns over a global supply glut overshadowing geopolitical risks. Brent crude slipped to $59.71 a barrel, while West Texas Intermediate (WTI) hovered near $55.99. Both benchmarks are down roughly 2.5% for the week.
Markets remain pressured by expectations that global supply will continue to exceed demand through 2026, driven largely by rising output from non-OPEC producers and the gradual phase-out of earlier OPEC+ production cuts. Weak demand signals from China — the world’s largest crude importer — have heightened these concerns, while ample fuel and crude inventories in the U.S. and across Asia have further reinforced the oversupply narrative.
Although traders are monitoring potential supply risks stemming from U.S. sanctions on Russia and tighter restrictions on Venezuelan oil exports, uncertainty over the scope and timing of any disruption has kept the market’s focus squarely on structural oversupply. As a result, ongoing geopolitical tensions have provided little support, leaving crude prices under downward pressure.