Oil Pressured as Iran Risk Eases and Supply Growth Accelerates

Oil prices stabilised but remained under pressure after a week marked by fading geopolitical risk and growing supply concerns. Brent hovered near $67.55 while WTI traded around $62.85, both set for a second consecutive weekly decline.

Earlier gains driven by fears of potential U.S. military action against Iran have largely reversed after signals from Washington suggested diplomacy could prevail. As conflict risk premiums unwound, crude valuations eased.

Adding to the bearish tone, the International Energy Agency projected that global supply growth may outpace demand in 2026, challenging earlier expectations of tighter balances. The report, combined with a recent sharp build in U.S. crude inventories, reinforced concerns that markets may be overestimating near-term consumption strength.

Expectations of rising Venezuelan output further complicate the supply picture, as potential sanctions relief could lift production toward 1.2 million barrels per day. Together, these developments tilt the balance toward surplus conditions, capping upside momentum.

Read more on how easing Iran tensions, IEA forecasts and shifting supply dynamics are shaping oil’s near-term outlook.