Key Points:
- Oil prices are set for a second straight weekly loss.
- Brent crude dropped nearly 1% due to market caution.
- OPEC+ members may start increasing oil production in April.
- Experts predict global supply will exceed demand this year.
Oil markets are finishing a rough week. Prices are on track for their second straight weekly drop, marking the first time this has happened in 2026. Investors are stepping back from risky assets, and there is growing talk that major oil producers will soon release more barrels into the market.
Global benchmark Brent crude fell as much as 0.9% on Friday. It briefly rose earlier in the day but could not hold the gains. This decline is part of a wider trend where financial markets are feeling cautious. When investors get nervous about the economy, commodities like oil often take a hit.
The biggest driver of this price drop is the Organization of Petroleum Exporting Countries (OPEC+). Delegates from the group say some members believe it is time to increase output. They are looking at April as a potential start date for pumping more oil. These producers argue that fears of an oil glut—having too much supply—are exaggerated.
This recent slide snaps a winning streak for oil. In the first few weeks of 2026, prices climbed steadily. That rise was mostly due to political tension, specifically the standoff between the United States and Iran. However, those geopolitical fears are no longer enough to keep prices high on their own.
Industry experts are also weighing in. During a major energy conference in London this week, attendees painted a bearish picture. Many predicted that worldwide oil supplies would top demand for the rest of the year.
If supply outpaces demand, stockpiles will grow. Experts specifically pointed to the Atlantic basin as a region where inventories could pile up. Since this region helps set global prices, extra inventory there usually means lower costs for buyers.
Traders are now waiting to see if OPEC+ officially commits to the April increase. If they do, the market will have to absorb more oil than expected, which could push prices down even further in the coming weeks.
