Oil notches third straight weekly loss as oversupply worries grow

Oil notched its third straight week of losses on Friday as traders grew increasingly concerned about oversupply.

West Texas Intermediate (CL=F) traded at $57.54 per barrel, while Brent futures (BZ=F) settled at $61.29 per barrel at their lowest level since May. WTI and Brent closed out the week down more than 2%.

Back-and-forth tariff sparring between the US and China and a recent deescalation of tensions in the Middle East have weighed on the energy markets over the past week.

President Trump said he had a “productive” call with Russian President Vladimir Putin ahead of an upcoming meeting with Ukrainian President Volodymyr Zelensky, adding that he and Putin plan a second summit in Budapest.

Any progress toward ending the war could unlock more Russian crude onto global markets, intensifying supply concerns.

Meanwhile, US crude stockpiles increased for a third straight week, also raising concerns about too much oil in the world market.

The International Energy Agency reinforced that view earlier this week, trimming its demand forecast while raising its surplus expectations for 2026 as production from the Organization of the Petroleum Exporting Countries and its allies increases.

Wall Street has been warning of a supply glut going into 2026.

Goldman Sachs predicts Brent will fall to $56 per barrel, while WTI will drop to $52 per barrel.

Year to date, both Brent and WTI are down more than 18%.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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