Oil posted its third straight week of losses on Friday as traders grew increasingly concerned about oversupply.
West Texas Intermediate (CL=F) was trading at $57.54 a barrel, while Brent futures (BZ=F) were trading at $61.29 a barrel, its lowest level since May. WTI and Brent closed the week with a drop of more than 2%.
Tariff conflicts between the United States and China and the recent reduction in tensions in the Middle East have weighed on 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 are planning a second summit in Budapest.
Any progress toward ending the war could release more Russian crude onto global markets, intensifying supply concerns.
Meanwhile, U.S. crude stockpiles rose for the third consecutive week, also raising concerns about an oil glut on the global market.
The International Energy Agency reinforced that view earlier this week, cutting its demand forecast and raising its surplus expectations for 2026 as output from the Organization of the Petroleum Exporting Countries and its allies increases.
Wall Street has been warning of oversupply between now and 2026.
Goldman Sachs predicts Brent will fall to $56 per barrel, while WTI will fall to $52 per barrel.
So far this year, both Brent and WTI are down more than 18%.
Inés Ferré is a senior business reporter at Yahoo Finance. Follow her on X in @ines_ferre.
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