Oil Prices Tumble Toward Second Consecutive Weekly Loss

Core Insights - Crude oil prices are experiencing a decline, marking the second consecutive weekly loss as fears of U.S.-Iran escalation diminish [1] - Brent crude is trading at $67.36 per barrel, while West Texas Intermediate is at $62.66 per barrel, both down from earlier highs [1] Market Dynamics - The U.S. is reportedly seeking more time to finalize a nuclear deal with Iran, which has reduced the near-term geopolitical risk premium and pressured oil prices [2] - OPEC's report maintains demand growth projections at 1.38 million barrels daily for this year and 1.34 million barrels daily for 2027, despite a production drop of 439,000 barrels daily last month due to disruptions in Kazakhstan [4] - The U.S. Energy Information Administration (EIA) reported an increase in oil inventories to 8.53 million barrels and production to 498,000 barrels daily, which the market largely ignored [3] Demand and Supply Outlook - The International Energy Agency (IEA) revised down its demand growth predictions to 850,000 barrels daily from a previous estimate of 930,000 barrels daily, contributing to a 3% decline in oil prices [5] - The IEA also forecasts a surplus in the oil market by 2026, with supply expected to rise by 2.4 million barrels per day to 108.6 million barrels per day, evenly split between non-OPEC+ and OPEC+ producers [6] - Last month, global oil supply fell by 1.2 million barrels per day to 106.6 million barrels per day due to severe winter weather affecting North American operations and the decline in Kazakhstan production [6]