Oil prices continued to fall as US-Iran tensions eased
Oil prices fell in Asian markets on Friday, extending losses from the previous session, as concerns about supply risks eased following a reduced likelihood of a US attack on Iran.
Brent crude was down 21 cents, or 0.3%, to $63.55 a barrel as of 04:18 GMT, while WTI fell 15 cents, or 0.3%, to $59.04 a barrel.
Both Brent and WTI reached their highest levels in recent months this week after Trump signaled a possible intervention in Iran. Brent prices were poised for a fourth weekly gain.
However, late Thursday, Trump said Tehran had eased its crackdown on protesters, easing concerns about a possible military intervention that could disrupt oil supply.
Brent oil prices gave back some of their earlier gains but remained higher than a week ago. Given the potential political turmoil in Iran, markets have digested the possibility of supply disruptions.
Fundamental indicators appear calm in the background, and the impact of headlines remains short-lived. However, analysts remain pessimistic about supply expectations for this year, despite OPEC's earlier expectation of a balanced market.
Despite constant mention of geopolitical risks and macroeconomic speculation, the fundamental balance still points to a supply surplus. Unless we see a real rebound in Chinese demand or a significant bottleneck in physical barrel flow, oil prices appear likely to remain limited, with Brent generally trading between $57 and $67.
On Wednesday, OPEC offered an optimistic forecast, stating that oil supply and demand will be balanced in 2026 and demand will grow at a similar rate to this year's growth in 2027.
Oil giant Shell released its 2026 Energy Security Scenarios on Thursday, presenting an optimistic picture for energy demand and oil growth. The company estimated that primary energy demand could be 25% higher than last year by 2050.
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