Oil prices are on the brink of a second consecutive weekly decline, as fears of a U.S.-Iran escalation subside. At the time of writing, Brent crude is trading at $67.36 per barrel, while West Texas Intermediate is at $62.66 per barrel, both experiencing a slight dip from their earlier weekly highs. This trend is attributed to the U.S. seeking more time to reach a nuclear deal with Iran, which reduces the immediate geopolitical risk premium. However, the market's response to the EIA data, showing an increase in both oil inventories and production, has been largely overlooked. OPEC's report, on the other hand, maintains its bullish stance, predicting steady demand growth. The International Energy Agency's (IEA) latest monthly report, however, sparked a 3% decline in oil prices on Thursday, as the IEA revised down its demand growth predictions. The IEA also confirmed its estimate that the oil market will be in a surplus in 2026, with supply set to rise by 2.4 million barrels per day. This surplus is expected to be evenly split between non-OPEC+ and OPEC+ producers. But here's where it gets controversial... The IEA's downward revision of demand growth predictions and its forecast of a surplus in 2026 could spark differing opinions. What do you think? Do you agree or disagree with the IEA's assessment? Share your thoughts in the comments below.
