FX.co ★ Oil Set for Sharp Weekly Loss

West Texas Intermediate (WTI) crude oil futures held steady near $58 per barrel on Friday, though they were poised for a weekly decline exceeding 3% amid projections of a global oil surplus. The International Energy Agency reaffirmed its prediction of a record supply glut, albeit slightly revised down from the previous month's estimate, highlighting that global inventories have reached their highest level in four years. In contrast, OPEC upheld its projections for both global oil supply and demand through 2026, indicating a potential move towards a more balanced market. Earlier in the week, geopolitical tensions had an impact on prices. The United States intercepted a sanctioned Venezuelan oil tanker, a move that Venezuela described as an "act of piracy." Despite possessing the world's largest oil reserves, Venezuela exported approximately 586,000 barrels per day last month, predominantly to China. Additionally, Ukraine carried out a strike on another tanker associated with Russia's oil trade—its fifth such attack since late November—even as the United States continues advocating for a ceasefire.