Oil Posts Second Weekly Loss
Oil prices rose at settlement on Friday, February 13, but still posted their second consecutive weekly loss after reports that the OPEC+ alliance is leaning toward resuming production increases, and as investor concerns eased about the risk of a conflict between the United States and Iran that could disrupt supplies.
Brent crude futures rose 23 cents, or 0.34%, to settle at $67.75 a barrel, after falling 2.7% in the previous session.
U.S. crude futures rose 5 cents, or 0.08%, to settle at $62.89 a barrel.
The price decline came after Reuters reported, citing three OPEC+ sources, that the alliance is leaning toward resuming oil production increases starting in April, as it prepares for peak summer demand.
Both crude benchmarks are expected to post weekly declines, with Brent crude forecast to fall 1.5% and West Texas Intermediate (WTI) crude 2%.
Easing Geopolitical Risks
Prices had been supported earlier in the week by concerns over a potential US attack on Iran over its nuclear program, but comments from US President Donald Trump about the possibility of reaching an agreement with Tehran within the next month reduced the risk premium and pushed prices down.
Analysts said the market reacted quickly to indications that negotiations would be given more time, easing concerns about near-term supply disruptions.
Supply and Inventories Pressure
Meanwhile, the International Energy Agency (IEA) predicted a slowdown in global oil demand growth this year compared to previous estimates, with the possibility of supply exceeding demand.
The pressure was further compounded by data showing a significant increase in US crude inventories, along with expectations that Venezuelan supplies would return to pre-sanctions levels.
It is estimated that Venezuela's production could rise from about 880,000 barrels per day to nearly 1.2 million barrels per day in the coming months.
