Oil extends losses

Brent crude futures fell below $66 per barrel on Friday, extending a nearly 2% slide from the prior session, as concerns over weakening US demand and signs of oversupply pressured the market. WTI futures followed suit, dropping under $62 per barrel.

Data from the US Energy Information Administration showed crude inventories unexpectedly rose by 3.9 million barrels last week, defying expectations for a drawdown and pointing to softer consumption.

Adding to bearish sentiment, the International Energy Agency projected global supply growth will outpace earlier forecasts as OPEC+ ramps up production. By contrast, OPEC’s own report, released shortly after, left its non-OPEC supply and demand outlook unchanged, citing steady consumption trends.

Geopolitical developments provided a counterweight, with the US reportedly urging G7 allies to impose higher tariffs on India and China over their continued purchases of Russian crude. Meanwhile, conflicts in the Middle East and Ukraine have kept supply risks in focus.

Despite this week’s pullback, oil prices remain on track for a modest weekly gain, supported earlier by geopolitical concerns that tightened risk premiums. Analysts suggest that near-term price action will hinge on whether demand indicators in the US improve enough to offset growing supply-side pressures.