Oil poised for weekly drop as Iran fears ebb and broader markets slide

Oil prices headed for the first consecutive weekly decline this year on a risk-off tone in wider markets, as well concerns regarding a global crude glut and the prospect of drawn out talks between US and Iran over a nuclear deal.

West Texas Intermediate steadied under $63 a barrel, after declining nearly 3%on Thursday, while Brent was over $67.

Asian stocks declined on Friday post fresh losses on the Wall Street and across commodities.

On Iran, US President Donald Trump said he could see negotiations stretching for as long as a month, reducing the possibility of military action in the near term that could upset supplies. For now, the US leader is seeking a diplomatic agreement to roll back the OPEC member’s nuclear ambitions.

The International Energy Agency, meanwhile, reiterated that there would be a glut of just over 3.7 million barrels a day in 2026, which would be a record in annual average terms. Global stockpiles expanded last year at the strongest pace since the 2020 pandemic, the agency added in a monthly report.

Oil’s sequential weekly declines stand to snap a long run of gains in early 2026, with the earlier advance supported by recurrent bouts of geopolitical tension, including the US stand-off with Iran. At an energy conference in London this week, attendees have flagged that they expect worldwide supplies to top demand this year, potentially feeding into higher inventories in the Atlantic basin, the region where global prices are set.

In Venezuela, Caracas plans to grant more oil-production land to Chevron Corp. and Repsol SA, according to people with knowledge of the matter, potentially supporting growth in supply after the US intervention in January. Separately, Interior Secretary Doug Burgum said Washington, in coordination with Venezuela, would sell the country’s oil to China at global prices.

With inputs from Bloomberg

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