Oil prices ticked lower on Friday, on track to post a weekly decline of nearly 3%, as investors weighed the impact of a potential summit between Donald Trump and Vladimir Putin aimed at ending the war in Ukraine, alongside concerns over rising global supply.
Brent crude futures fell 16 cents, or 0.26%, to $60.90 a barrel at 06:45 GMT, while U.S. West Texas Intermediate (WTI) futures slipped 15 cents, also down 0.26%, to $57.31.
Geopolitical developments weigh on sentiment
The losses come after the two leaders agreed on Thursday to hold another summit in Hungary, potentially within the next two weeks. The unexpected announcement followed mounting concerns in Moscow over new U.S. military support for Kyiv.
The news coincided with Volodymyr Zelenskiy’s visit to the White House, where the Ukrainian president was set to lobby for additional U.S. aid, including long-range Tomahawk missiles. At the same time, Washington has been pressuring India and China to scale back Russian oil purchases.
“Concerns of tighter supplies were eased after it was announced that Trump would be meeting with Putin to discuss ending the war in Ukraine,” said Daniel Hynes, an analyst at ANZ, in a note.
Supply concerns intensify
The downward pressure on oil prices was amplified by supply data from the U.S. Energy Information Administration, which reported a 3.5 million barrel increase in U.S. crude inventories last week, bringing the total to 423.8 million barrels. That build was well above analyst expectations of a 288,000-barrel rise, according to a Reuters poll.
The surprise increase was attributed to lower refinery activity as facilities undergo seasonal autumn maintenance. Meanwhile, U.S. crude production rose to a record 13.636 million barrels per day, further reinforcing concerns about oversupply.
Earlier this week, the International Energy Agency warned of a growing global supply glut in 2026, adding another bearish factor for the market.
On Thursday, Brent closed 1.37% lower and WTI slipped 1.39%, both benchmarks hitting their weakest levels since May 5.
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