Crude Oil Heads for First Consecutive Weekly Decline on February 13, 2026, Amid Oversupply Concerns

Crude oil prices were set for their first consecutive weekly decline of 2026 as broader market weakness and oversupply signals pressured global benchmarks. West Texas Intermediate (WTI) traded under $63 a barrel after a sharp fall of nearly 3% on Thursday.

Brent crude held above $67 but also reflected the broader downtrend seen across commodity markets. Global sentiment weakened further as Asian equities followed losses on Wall Street, adding to a risk‑off environment that affected energy prices.

Market Sentiment Turns Risk-Off Across Regions

WTI’s retreat below $63 came after a nearly 3% slide driven by cautious investor behaviour across global markets. Brent crude remained over $67, although it mirrored the downward trajectory in energy prices seen throughout the week.

Asian stock markets also declined on Friday following renewed weakness in US equities, highlighting the broader risk‑off sentiment. These market movements collectively contributed to reduced appetite for commodities, including crude oil.

US–Iran Nuclear Discussions Ease Near-Term Supply Risks

US President Donald Trump indicated that negotiations with Iran could continue for as long as a month. This reduced the likelihood of immediate military action that could potentially disrupt crude supplies in the Middle East.

The US administration is currently pursuing a diplomatic framework focused on limiting Iran’s nuclear capabilities. The reduced geopolitical tension contributed to easing the risk premium that had previously supported oil prices.

IEA Flags Record Supply Glut Expectations For 2026

The International Energy Agency reiterated expectations of a crude oil surplus of just over 3.7 million barrels per day in 2026. This projected oversupply would represent a record in annual average terms for the global oil market.

The agency also noted that global stockpiles grew in the previous year at the strongest pace since the 2020 pandemic. These expanding inventories contributed to downward pressure on prices amid concerns of weakening demand relative to supply growth.

Sequential Weekly Declines Follow Earlier Geopolitical-Driven Gains

Oil prices had previously risen through early 2026, supported by intermittent geopolitical tensions, including uncertainty around the US–Iran relationship. The latest declines, however, mark a reversal as market participants shift focus to supply-demand fundamentals.

At an energy conference in London this week, participants noted expectations that global supplies would exceed demand this year. This development may lead to higher inventories in the Atlantic basin, the benchmark-setting region for global crude prices.

Read More: Rupee Rises To 90.40 Amid Steady FPI Flows.

Conclusion

Crude oil benchmarks moved lower this week as weakening global sentiment, reduced geopolitical tensions and mounting oversupply concerns pressured prices. WTI remained under $63, while Brent held above $67, but both reflected broader downward momentum.

Forecasts of record supply gluts and rising inventories contributed further to market caution. These conditions collectively led to crude oil’s first consecutive weekly decline of 2026.

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