Crude Tumbles Toward Second Weekly Decline Amid Supply Glut Concerns and Geopolitical Tensions

Oil markets faced renewed selling pressure on Friday, with both benchmark contracts posting losses as traders grappled with conflicting signals from supply dynamics and global developments. The week’s overall decline of more than 2 percent reflected growing anxiety about excess crude availability weighing on sentiment, even as geopolitical hotspots continued to threaten production.

Brent crude futures retreated to $59.73 per barrel, marking a 0.2 percent drop on the day, while U.S. crude settled at $55.90 with matching losses. The persistent weakness underscored a fundamental tension in the market: concerns about potential supply shortfalls from Russia and Venezuela were overshadowed by the more immediate worry over a developing global glut that threatens to keep prices under pressure.

The Ukraine situation added complexity to the outlook. U.S. President Donald Trump indicated Thursday that peace negotiations have progressed meaningfully, with both parties narrowing differences, though territorial control and security arrangements remain contested issues. Meanwhile, the European Union signaled it would explore direct borrowing mechanisms to support Ukrainian defense spending rather than tap previously sanctioned Russian assets.

Russia’s cautionary stance on Venezuela policy intensified the backdrop. Moscow warned the Trump administration against what it termed “critical mistakes” regarding Venezuela, suggesting potential consequences extending throughout the Western Hemisphere. Through official channels, Russia’s Foreign Ministry called for restraint and an end to escalatory moves, reflecting concern over how U.S. policy shifts could reshape energy markets and regional stability.

The oil complex remained caught between these competing narratives. Supply glut anxieties—driven by adequate inventories and modest demand concerns—proved more influential than disruption fears, suggesting traders currently price in limited risk premium for geopolitical events. For the week, crude losses accumulated as the oversupply narrative maintained dominance over supply-risk considerations.