Oil prices posted small gains Friday but ended the week sharply lower, down nearly 3%, as expectations for an oversupplied market outweighed easing geopolitical tensions. Brent crude futures settled 23¢ higher (+0.38%) at $61.29 a barrel, while U.S. West Texas Intermediate (WTI) futures edged up 8¢ (+0.14%) to $57.54. For the week, Brent fell 8.1%, its steepest drop in over three months, while WTI lost 7.4%.
The modest rebound came after U.S. President Donald Trump and Russian President Vladimir Putin agreed to meet in Hungary within two weeks to discuss Ukraine, following a cease-fire between Israel and Hamas earlier in the week that further eased Middle East tensions.
“An unprecedented amount of risk has come out of the market,” said Phil Flynn, senior analyst at Price Futures Group.
The International Energy Agency’s forecast for a growing oil surplus in 2026 continued to weigh on sentiment, as did renewed U.S.–China trade tensions, which investors fear could weaken global demand.
“It just demolishes confidence,” said Jorge Montepeque, managing director at Onyx Capital Group.
Adding bearish pressure, U.S. government data showed crude inventories rose 3.5 million barrels to 423.8 million last week, while domestic oil production climbed to 13.64 million barrels per day — a record high.
A fire at BP’s Whiting refinery in Indiana briefly disrupted local fuel markets, sending Great Lakes gasoline prices higher by as much as 20 cents per gallon, though analysts said the national impact would be limited.