Oil Set to Close Lower for Second Straight Week
Global oil prices are on track to finish lower for the second straight week as optimism grows over prospects for a peace deal in the Russia-Ukraine conflict and lingering uncertainty around Venezuelan supply disruption weighs on the market. Brent crude and U.S. West Texas Intermediate (WTI) benchmarks both slipped modestly in recent trading, keeping weekly declines intact.
Weekly price movements
Brent crude futures edged down, trading just under $60 a barrel, while WTI hovered around the mid-$50s. Over the week, both benchmarks have fallen by more than 2 %, extending a recent trend of weakening prices as traders reassess geopolitical risk premiums and global supply expectations.
Geopolitical and supply dynamics
The possibility of a negotiated end to the war in Ukraine has eased some fears over potential supply disruptions from Russian crude, which had been supporting prices. At the same time, uncertainty remains about how a U.S. blockade of Venezuelan oil tankers might affect actual exports, as enforcement details are unresolved. Venezuela accounts for a small share of global oil output but any disruption could still influence tight market balances.
Analysts also point to projections of oversupply in 2026, with increased production from major producers including OPEC+ and the United States keeping downward pressure on prices. Financial markets are watching technical levels closely, with some analysts noting that breaks below key price support levels could reinforce bearish momentum.
Outlook for markets
The broader energy market enters the final trading weeks of 2025 with crude prices below recent highs, reflecting a complex mix of geopolitical optimism, supply expectations and economic signals. Investors will continue to monitor negotiations over peace in Ukraine, U.S. sanctions enforcement, and global production trends as potential drivers of oil price direction in early 2026.
