Oil prices closed lower on Friday as a supply glut and a potential Russia-Ukraine peace deal outweighed worries about any impact from the US seizure of an oil tanker near Venezuela.
Brent crude went down by 16 cents to trade at $61.12 a barrel and the US West Texas Intermediate (WTI) crude also declined by 16 cents to finish at $57.44 per barrel. For the week, both benchmarks lost more than 4 per cent this week.
Market analysts noted that the market continues to be weighed down by the crude oil supply situation. Oversupply has become the defining feature of the market, with traders questioning whether any upcoming catalysts are strong enough to offset the growing imbalance stretching into early 2026.
The US seized a sanctioned oil tanker off the coast of Venezuela, President Donald Trump said on Wednesday. The US is preparing to intercept more ships transporting Venezuelan oil after the seizure of a tanker this week.
However, traders and analysts largely shrugged off worries about the impact of the tanker seizure, pointing to ample supply in the markets.
The International Energy Agency (IEA) corrected its 2026 oil glut forecast to 3.84 million barrels per day in its latest monthly report, down 250,000 barrels per day from a month ago, hiking its demand growth forecast for next year to 860,000 barrels per day compared to 2.4 million barrels per day supply growth.
Meanwhile, data in a report by the Organisation of the Petroleum Exporting Countries (OPEC), indicated that world oil supply will match demand closely in 2026, in contrast to the IEA’s view.
Russian oil production increased to 9.367 million barrels per day last month, up by a mere 10,000 barrels per day compared to October, leaving the world’s third-largest producer 165,000 barrels per day below its OPEC+ quota as Ukraine’s drone strikes derailed crude loadings in November.
Also, Russia’s seaborne oil product exports in November fell by just 0.8 per cent from October, with the completion of refinery maintenance helping to offset a slump in fuel exports from southern routes such as the Black Sea and Azov Sea.
During the week, the US Federal Reserve has lowered the federal funds rate to 3.50-3.75 per cent.