Oil Slips Further as Inventories Rise and Geopolitics Stir Markets

Highlights:

• Brent crude slipped 0.13% to US $60.98 per barrel, while WTI declined 0.16% to US $57.37, at the time of writing, marking a 3% weekly loss amid oversupply fears.
• U.S. crude inventories surged by 3.5 million barrels to 423.8 million, while production hit a record 13.636 million barrels per day, adding pressure on prices.
• The upcoming Trump–Putin summit on the Ukraine war and the IEA’s warning of a 2026 supply glut weighed further on oil market sentiment.

Brent crude futures dipped by 8 cents (0.13 %) to US $60.98 a barrel, at the time of writing, while U.S. West Texas Intermediate (WTI) fell 9 cents (0.16 %) to US $57.37. The week saw nearly a 3 percent retreat in both benchmarks, pressured by expectations of a looming supply glut in 2026.

Inventory Surge and Production Break Records

The U.S. Energy Information Administration (EIA) reported a 3.5 million-barrel build in crude inventories, pushing total stocks to 423.8 million barrels, well above market expectations of a modest 288,000-barrel rise. Analysts attribute the overshoot to lower refinery utilization, as several plants undergo seasonal maintenance. Meanwhile, U.S. oil output climbed to a record 13.636 million barrels per day, further adding to downward pressure on prices.

Politics Weigh in: Trump–Putin Summit in the Wings

In a surprise diplomatic turn, Donald Trump and Vladimir Putin agreed to hold a summit on the Ukraine conflict, potentially in Budapest within the next two weeks.  The announcement cooled fears about tighter supply due to conflict escalation, dampening bullish sentiment in oil markets.

Outlook: Oversupply Risks and Weak Demand

With inventories rising, refinery slowdowns, and record output, the near-term outlook appears tilted toward glut concerns rather than tightness.

That said, any unexpected geopolitical disruption or policy intervention could throw markets off balance. For now, oil traders are bracing for further downside unless demand rebounds or producers dial back output.

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