Oil prices fell in Asian trade on Friday, extending losses from the previous session, as concerns over potential supply disruptions eased after the likelihood of a US military strike on Iran receded.
Kathleen Kennedy Steps Down as Lucasfilm Head, Dave Filoni to Lead Star Wars
Brent crude was down 21 cents, or 0.3 per cent, at $63.55 a barrel, while US West Texas Intermediate (WTI) fell 15 cents, or 0.3 per cent, to $59.04 a barrel at 0418 GMT.
Both benchmarks had climbed to multi-month highs earlier this week after protests erupted in Iran and US President Donald Trump signalled the possibility of military action. Despite Friday’s pullback, Brent was still on track for a fourth consecutive weekly gain.
Late on Thursday, however, Trump said Iran’s crackdown on protesters appeared to be easing, tempering fears of an imminent strike that could disrupt oil supplies from the region.
“Brent prices have given back earlier gains but remain higher than a week ago,” BMI analysts said in a note, adding that the retreat was driven by Trump’s remarks about holding off on military action against Iran.
“Given the potential political upheaval in Iran, oil prices are likely to experience greater volatility as markets digest the risk of supply disruptions,” the analysts said.
Market participants remain cautious about the longer-term supply outlook, with many analysts maintaining a bearish stance despite OPEC’s assessment of a balanced market.
“Sentiment is driving markets, but the impact of headlines is always short-lived, especially when fundamentals look comfortable,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“Unless we see a genuine revival in Chinese demand or a meaningful bottleneck in physical oil flows, prices are likely to remain range-bound, with Brent broadly hovering between $57 and $67.”
On Wednesday, OPEC said global oil supply and demand were expected to remain balanced in 2026, with demand growth in 2027 forecast to match this year’s pace.
Meanwhile, oil major Shell released its 2026 Energy Security Scenarios on Thursday, presenting a bullish long-term outlook. The company projected that global primary energy demand by 2050 could be 25 per cent higher than last year.
