Brent Crude Tops $64.55 Amid Strong Demand Signals and Oversupply Concerns

London | EcoPulse24

Oil prices posted moderate gains on Friday, supported by improved risk appetite and a weaker US dollar, as markets continued to weigh global energy prospects between strong demand signals and persistent oversupply concerns.

West Texas Intermediate (WTI) futures traded near $59.86 per barrel, up about 0.84%, while Brent crude climbed above $64.55 per barrel, an increase of approximately 0.78%. Both benchmarks partially recovered losses from the previous session.

This improvement followed remarks from Saudi Aramco's CEO, who downplayed fears of a potential oil glut, citing robust underlying demand in major emerging economies, notably China and the US. He noted that global oil consumption reached record levels last year, with further growth expected in 2026.

Conversely, the International Energy Agency reiterated that global supply is likely to exceed demand this year, even after a slight upward revision to its demand growth forecast, which tempered price gains.

Additional support came from the weaker US dollar, enhancing the appeal of dollar-priced commodities. However, gains remained capped by ongoing supply concerns, rising hopes for a ceasefire in Ukraine, and easing US rhetoric towards Iran.

On a weekly basis, oil prices are on track for modest gains, reflecting a fragile equilibrium between supportive demand factors, geopolitical risks, and supply pressures.

EcoPulse24 Analysis

The current oil market reflects a search for clear direction amid conflicting signals. Aramco's statements highlight resilient real demand, especially in major economies, while the oversupply narrative led by the IEA continues to cap prices. In the near term, oil will remain subject to a delicate balance between geopolitical developments and US dollar movements; any significant shift regarding Ukraine or Iran could quickly reprice risks, up or down, without necessarily breaking the current trading range.