Oil set for weekly drop as Iran risks recede, oversupply concerns

Core Viewpoint - Oil prices are experiencing a second weekly decline due to reduced concerns over a potential conflict with Iran and forecasts indicating that supply will exceed demand this year [1] Group 1: Oil Price Movements - Brent crude oil futures increased by 3 cents, or 0.04%, to $67.55 per barrel, while U.S. West Texas Intermediate (WTI) crude rose by 1 cent, or 0.02%, to $62.85 after previous declines of 2.7% and 2.8% respectively [1] - Brent prices are projected to drop by 0.8% this week, while WTI is expected to fall by 1.1% [1] Group 2: Geopolitical Factors - Concerns regarding a U.S. attack on Iran over its nuclear program had initially driven prices higher, but comments from U.S. President Donald Trump suggesting a potential deal with Iran led to a decrease in prices [1] - The reduction in geopolitical risk is attributed to the U.S. seeking more time to negotiate a nuclear deal with Iran [1] Group 3: Supply and Demand Dynamics - The International Energy Agency (IEA) reported that global oil demand growth for this year will be weaker than previously expected, with supply anticipated to exceed demand [1] - A significant increase in U.S. crude stockpiles and expectations of rising Venezuelan oil supply, projected to increase from 880,000 barrels per day to about 1.2 million barrels per day, contributed to the decline in prices [1] - The U.S. Treasury is set to issue more allowances easing sanctions on Venezuelan energy, which could further impact supply dynamics [1]