Oil prices slipped again on Friday during Asian trading, adding to losses from the day before. The main reason? Fears about supply problems started to calm down after it became less likely that the U.S. would strike Iran.
Brent crude fell by about 21 cents, landing near $63.55 a barrel. U.S. oil, known as WTI, dropped around 15 cents to about $59.04 a barrel.
Earlier this week, oil prices had jumped to their highest levels in months. That happened after protests broke out in Iran and U.S. President Donald Trump hinted that military action could be on the table. Even with Friday’s dip, Brent oil was still on track for its fourth straight week of gains.
But things shifted late Thursday. President Trump said Iran’s government appeared to be easing its crackdown on protesters. That comment cooled fears of an immediate military strike, which would have threatened oil supplies from the region.
Because of that, some of the recent price gains faded. Analysts said prices pulled back mainly because Trump signaled he would hold off on military action for now. Even so, oil prices are still higher than they were a week ago.
Analysts also warned that oil prices could stay jumpy. With political tension still hanging over Iran, markets are likely to react quickly to any new headlines that hint at supply trouble.
At the same time, many experts are still not convinced prices will stay high for long. They believe there’s plenty of oil available in the market this year, even with all the political noise.
One analyst explained it simply: headlines move prices fast, but those moves don’t usually last. When you look at the real supply and demand picture, the market still looks well supplied. Unless China’s demand suddenly jumps or oil shipments face real disruptions, prices may stay stuck in a range. For Brent crude, that range is expected to be roughly $57 to $67 a barrel.
OPEC also weighed in earlier this week, saying it expects oil supply and demand to stay balanced in 2026. The group added that demand growth in 2027 should be similar to what the world is seeing this year.
Meanwhile, energy giant Shell shared a more optimistic long-term view. In a new report, the company said global energy demand could be 25% higher by 2050 compared to last year, making a strong case for continued oil demand growth in the years ahead.
In short, oil prices eased as fears around Iran cooled, but the market remains sensitive. Politics may push prices around in the short term, while the bigger supply picture continues to keep a lid on major price spikes.
