Oil prices are on track for a second straight weekly decline as fears of renewed fighting in the Middle East ease. President Trump said the U.S. no longer needs a deal with Iran, but the IEA reports that global supply now exceeds demand.
U.S. West Texas Intermediate crude is set to lose another 3.3% this week after falling 13% last week. Fears of a renewed round of fighting eased, although the conflict remains in a stalemate and attacks on tankers in the Persian Gulf continue.
Brent and WTI slip again
As of 05:40 ET (10:40 GMT), WTI futures had fallen 1.0% to $87.84 a barrel. Brent crude futures slipped 0.6% to $95.21 a barrel, and the global benchmark was heading for a more than 3% weekly drop after a 16% plunge in the previous week. Even so, Brent remains nearly 60% higher year to date.
Trump says he does not need an Iran deal
On Thursday, Trump said Washington no longer needed an agreement with Iran, dimming hopes of a diplomatic breakthrough. He argued that the U.S. had established significant financial leverage over Iran and secured control of the Strait of Hormuz.
Trump also instructed Vice President JD Vance to redirect his attention towards domestic priorities rather than negotiations with Iran. Analysts cited by Reuters interpreted the statement as a sign that the U.S. will maintain a naval blockade of Iranian ports and broader economic sanctions, rather than revert to launching fresh strikes.
Supply recovers while shipping risks persist
Meanwhile, global oil supplies have surpassed demand for the first time since the war began in late February, according to the International Energy Agency. The agency said the oil market is "showing tentative signs of rebalancing." It added that Gulf crude exports have recovered to around three-fourths of pre-war levels.
OPEC said its crude production increased by 1.96 million barrels per day to 27.16 million bpd in October, approaching its pre-war level of 28.63 million bpd recorded in February. Saudi Arabia led the recovery, raising output to 10.56 million bpd from 8.37 million bpd in September.
Security risks remain elevated, however. Risk consultancy Verisk Maplecroft recorded 36 confirmed attacks on commercial vessels across the Persian Gulf, Strait of Hormuz and Gulf of Oman in October, the highest monthly tally since the conflict began. ANZ analysts cautioned that the recovery remains vulnerable because restored supply relies on alternative logistical arrangements rather than secure shipping routes.
Source: Investing.com
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