Oil Prices Face Weekly Drop Amid Dwindling Iran Tensions and Glut Outlook: BZ=F, CL=F Weighed

Crude oil extended a losing week to end 2026, with Brent (BZ=F) above $67 and WTI (CL=F) under $63 as broader markets declined and fears of a global glut intensified. US-Iran nuclear talks loom, reducing near-term military action risks that previously supported prices. The International Energy Agency forecast a 2026 glut of 3.7 million barrels per day, the largest annual average on record, with global stockpiles at their highest since 2020. Asian equities fell on Friday amid Wall Street weakness, while Venezuelan production-sharing agreements with Chevron and Repsol could add to supply. The US plans to sell oil to China at global prices in coordination with Venezuela. The weekly decline in prices is likely to end a prolonged gains streak, with volatility expected as the Atlantic basin builds higher inventories.