Oil Prices This Week: Brent and WTI Slide More Than 4% on Supply Glut Fears — Week-Ahead Outlook (Updated Dec. 13, 2025)

Updated: Saturday, Dec. 13, 2025

Oil prices ended the week lower despite a burst of geopolitical drama that would normally lift crude. Brent settled Friday at $61.12 a barrel and U.S. WTI at $57.44, capping a weekly drop of more than 4% as traders focused on growing expectations of an oversupplied 2026 market and the possibility of a Russia-Ukraine peace deal easing supply risks. ^[1]

That bearish supply narrative stayed dominant even after the U.S. seized a Venezuelan crude tanker and fresh strikes hit Russian energy infrastructure—events that, in a tighter market, might have injected a bigger “risk premium” into prices. ^[2]

Where oil prices stand now

Because Dec. 13 is a Saturday and crude benchmarks don’t settle on weekends, “today’s” reference point is Friday’s close:

Brent (front-month futures): $61.12/bbl
WTI (front-month futures): $57.44/bbl ^[3]

Compared with last Friday’s settlement (Brent $63.75, WTI $60.08), that’s roughly a 4% weekly decline for both contracts. ^[4]

What moved oil prices this week

1) The “2026 glut” trade took center stage

The biggest force pressuring crude was the market’s growing conviction that supply growth will outpace demand next year.

The International Energy Agency (IEA) trimmed its projected 2026 surplus to 3.84 million barrels per day (bpd) (from 4.09 million bpd previously), but that still implies a very large oversupply relative to global demand. ^[5]
In its own analysis, the IEA also expects demand growth to remain relatively modest, with its December report highlighting demand growth of 830 kb/d in 2025 and 860 kb/d in 2026, with petrochemical feedstocks taking a larger share of incremental demand next year. ^[6]

At the same time, OPEC pushed back on the idea that the market must be awash in oil in 2026. OPEC’s latest report pointed to a near-balance, forecasting demand for OPEC+ crude averaging about 43 million bpd in 2026, close to what the group produced in November—implying only a small surplus if production holds steady. ^[7]

Bottom line: traders spent the week weighing two competing worldviews—IEA’s big surplus versus OPEC’s near-balance—and price action suggests the market leaned more toward the glut narrative. ^[8]

2) OPEC+ policy: cuts remain, but supply fears persist

OPEC+ has not “opened the taps,” but it also hasn’t convinced the market that it will remove the oversupply risk quickly enough.

Late November, OPEC+ kept policy steady, including a pause in output hikes for Q1 2026, while more than 3 million bpd of cuts remain in place—supportive in theory, but not enough to offset the broader surplus debate. ^[9]

3) Russia-Ukraine headlines pulled prices down more than strikes lifted them

This week’s trading repeatedly showed that the market is currently more sensitive to “peace deal” risk (bearish for crude) than to disruption headlines (bullish).

On Thursday, crude fell sharply as investors focused on Russia-Ukraine peace talk developments and the oversupply outlook. ^[10]
Even as Ukraine reported strikes on Russian oil infrastructure—such as the reported hit on the Slavneft-YANOS refinery in Yaroslavl and a suspension of operations—prices struggled to hold gains. ^[11]

4) Venezuela shock: tanker seizure, export disruption — but muted price impact

The biggest geopolitical headline was Washington’s move against Venezuelan crude shipments.

Reuters reported the U.S. seized the tanker M/T Skipper, loaded with roughly 1.8 million barrels of Venezuelan Merey crude, in what it described as the first formal seizure of Venezuelan oil under the 2019 sanctions framework. ^[12]
In the days that followed, Venezuela’s crude exports fell sharply, with tanker traffic slowing as shippers assessed the risk of further U.S. action; Reuters reported that only Chevron continued to move cargoes under special authorization, while other tankers—carrying about 11 million barrels—were effectively stranded. ^[13]

So why didn’t oil rally harder?

One explanation: the market believes Venezuela’s supply is no longer large enough to materially tighten global balances the way it once did—and that abundant global supply reduces the “geopolitical premium.” ^[14]

5) U.S. inventories: crude drew down, but gasoline and distillate surged

U.S. data delivered a mixed signal—one that ultimately reinforced the idea of ample near-term supply, especially in refined products.

The EIA’s weekly report for the week ending Dec. 5 showed:

Commercial crude inventories down 1.8 million barrels to 425.7 million
Gasoline inventories up 6.4 million barrels
Distillate inventories up 2.5 million barrels ^[15]

Reuters noted that the market’s attention also turned to large surpluses in U.S. gasoline and diesel inventories, weighing on crude during the week. ^[16]

6) A midweek bounce on tanker news didn’t stick

Crude did rally briefly midweek when the Venezuela story broke.

On Dec. 10, oil settled higher after reports that the U.S. seized a tanker off Venezuela’s coast—an immediate supply-risk headline that temporarily supported prices. ^[17]

But as the week progressed, that support faded under the broader weight of glut expectations and peace-deal speculation, culminating in Friday’s weekly slide. ^[18]

The bigger picture: what forecasters say about 2026 oil prices

A growing number of major institutions expect crude prices to remain under pressure into 2026—one reason rallies this week struggled to extend.

Energy agency forecast: EIA sees Brent around $55 in 2026

The U.S. Energy Information Administration’s Short-Term Energy Outlook (released Dec. 9) forecasts rising global inventories through 2026, projecting Brent averaging $55/bbl in Q1 2026 and staying near that level through the rest of next year. ^[19]

Bank view: Goldman sees lower averages in 2026

Goldman Sachs has projected Brent averaging $56 and WTI $52 in 2026, citing a supply surge and potential surplus conditions. ^[20]

Consensus signal: Reuters poll points to Brent in the low $60s next year

A Reuters poll of economists and analysts published in late November projected Brent averaging about $62.23/bbl in 2026, reflecting persistent oversupply concerns but also the possibility that geopolitical risks or OPEC+ policy could prevent a deeper collapse. ^[21]

The key disagreement: how big is the surplus?

The IEA still sees a very large surplus even after trimming its estimate, while OPEC argues the market will be closer to balanced—meaning the 2026 outlook remains unusually contested for this stage of the cycle. ^[22]

Oil price outlook for the week ahead: what to watch (Dec. 15–19, 2025)

1) U.S. inventory data: the next EIA report is a key catalyst

The next EIA Weekly Petroleum Status Report is scheduled for Dec. 17, 2025. Any surprise draw in crude and fuels—or a continuation of product builds—could swing sentiment quickly. ^[23]

What it could mean:

Bullish setup: larger-than-expected draws + rising refinery demand → supports a rebound from the low-$60s Brent area.
Bearish setup: continued gasoline/distillate builds → reinforces the “demand is not absorbing supply” narrative.

2) Venezuela shipping risk: will enforcement widen?

Traders will track whether the U.S. expands interceptions beyond the Skipper case and whether the reported export disruption persists—especially with cargoes reportedly stalled and only limited flows continuing. ^[24]

A sustained slowdown in Venezuelan loadings can tighten some regional heavy-crude balances, but this week showed the market may treat it as localized unless it materially changes global supply. ^[25]

3) Russia-Ukraine headlines: peace-talk momentum vs. infrastructure risk

Oil has reacted this month not only to strikes, but to any hint that a peace deal could reshape sanctions and flows. Expect crude to stay headline-sensitive on this front—particularly if diplomacy accelerates or if attacks hit larger nodes in refining or export logistics. ^[26]

4) Demand signals from China and global macro data

Markets are also watching upcoming China releases—industrial production and retail sales among them—for clues on demand growth into year-end and early 2026. ^[27]

5) Post-Fed positioning and the U.S. dollar

The Federal Reserve delivered a quarter-point cut this week and signaled a more cautious path ahead, which can influence the dollar and risk appetite—both important for commodities pricing. ^[28]

What to expect next: three scenarios for crude prices

Scenario A: “Glut wins” (base case in current price action)

If product inventories keep building and the market stays convinced the 2026 surplus is large, Brent may struggle to hold rallies, with traders selling strength—especially on peace-deal optimism. ^[29]

Scenario B: “Geopolitics finally bites”

If Venezuelan export disruption deepens or Russian supply/refining disruptions broaden materially, crude could regain a risk premium—even in a surplus environment. ^[30]

Scenario C: “Demand surprise”

Stronger demand signals (particularly from Asia) combined with sustained crude draws in U.S. data could shift the narrative from “oversupply” to “less-bad balance,” supporting a rebound—though many forecasters still see downside into 2026. ^[31]

The takeaway

Oil prices closed the week near $61 Brent and $57 WTI, down more than 4%, as traders prioritized the risk of a 2026 supply glut and the possibility of a Russia-Ukraine thaw over a burst of geopolitical disruption headlines from Venezuela and Russia. ^[32]

For the week ahead, the next big tests are U.S. inventory data (Dec. 17), the durability of Venezuela’s export slowdown after the tanker seizure, and whether Russia-Ukraine developments push the market toward a “more supply coming” narrative—or back to pricing disruption risk. ^[33]