Oil heads for another weekly decline as supply concerns mount

Oil was set for a second weekly drop, as supply increases around the world heighten concerns about the size of a forming glut.

West Texas Intermediate rose toward $60 a barrel, but was still on track for a weekly decline of about 2%, while Brent settled near $63 on Thursday. OPEC+ output rose slightly last month as key members restarted halted supplies, adding to production increases in other nations including Brazil and the US.

WTI has lost about 17% this year, with the International Energy Agency last month predicting a record oversupply in 2026 year will be bigger than previously estimated. Key price gauges also indicate that the outlook is worsening, with the premium that front-month WTI futures command over the next month’s contract, known as the prompt spread, narrowing in the past few weeks to near February lows.

Traders will be looking to a raft of reports next week — including from the IEA and the Organization of the Petroleum Exporting Countries — to get further insight into the supply-demand balance.

Threats to flows from Russia — the second-biggest crude exporter — have provided some upside to prices. Ukraine has stepped up attacks on Moscow’s energy infrastructure, while Washington is adding to the pressure after last month sanctioning the OPEC+ member’s two biggest producers.

The Treasury Department on Thursday said it wouldn’t grant a license to Gunvor Group to buy the international operations of Lukoil PJSC, leading the commodity trader to withdraw its bid for now. The assets for sale include global upstream production equivalent to the number of daily barrels pumped by Ecuador.

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