Oil prices fell on Friday and are on track for a second straight weekly decline as fears of a U.S.–Iran conflict that could disrupt supply recede and the broader market faces signs of oversupply. Brent crude futures were slightly down at around $67.46 a barrel, while U.S. West Texas Intermediate (WTI) traded near $62.72. Both benchmarks fell sharply in the prior session.
Earlier in the week, prices had climbed on concerns over potential U.S. action against Iran’s nuclear program. But comments from U.S. President Donald Trump suggesting the possibility of a deal with Tehran reduced the geopolitical risk premium and pushed markets lower.
In its latest monthly report, the International Energy Agency forecast weaker global oil demand growth this year and signaled that overall supply is expected to exceed demand — a key factor weighing on prices.
Traders were also influenced by data showing a large build-up in U.S. crude inventories and expectations of increased Venezuelan output as sanctions are eased. U.S. Treasury moves to ease energy-related sanctions on Venezuela could boost exports in the coming months, adding further downward pressure on prices.
Despite recent price drops, analysts say the lack of deeper declines suggests downside momentum may be slowing in the near term.
Frequently Asked Questions
Why are oil prices falling this week?
Oil prices declined as fears of a U.S.–Iran conflict eased after U.S. President Donald Trump signaled a possible nuclear deal with Iran. This reduced the geopolitical risk premium that had earlier pushed prices higher.
How much have prices dropped?
Brent Crude is set to fall about 0.8% this week, while West Texas Intermediate (WTI) is down roughly 1.1%, marking a second consecutive weekly decline.
What role did the International Energy Agency play in the decline?
The International Energy Agency (IEA) projected weaker global oil demand growth this year and expects supply to exceed demand, reinforcing concerns of a potential surplus in the market.
How is Venezuela affecting the market?
Expectations that Venezuelan oil output could rise — from around 880,000 barrels per day toward 1.2 million bpd — are adding to supply concerns. The U.S. Treasury is easing some sanctions, potentially allowing more Venezuelan crude to reach global markets.
Why didn’t prices fall even more sharply?
Despite bearish headlines — including rising U.S. crude inventories and supply forecasts — prices did not collapse further. Analysts suggest this could indicate that downside momentum is slowing in the short term, with markets waiting for clearer supply-demand signals.
