Oil Prices Slip as Oversupply and Weak U.S. Demand Pressure Markets

Oil prices retreated on Friday, weighed down by rising global supply and signs of softer demand in the United States.

Brent crude settled near $65.88 per barrel, down 49 cents on the day, while U.S. West Texas Intermediate futures slipped 51 cents to $61.86. The declines came even as geopolitical risks in the Middle East remained elevated.

Traders pointed to fresh data showing a build of nearly 3.9 million barrels in U.S. crude inventories, reinforcing concerns that demand growth is lagging behind supply. At the same time, the International Energy Agency noted that global production is expanding faster than anticipated, driven by steady OPEC+ output and rising contributions from non-OPEC producers.

Market analysts said that while political tensions could still spark short-term volatility, fundamentals currently lean bearish. Oversupply and lackluster consumption in key economies are acting as stronger headwinds, limiting the upside for prices despite ongoing geopolitical uncertainty.