Oil prices decline, record weekly loss

Oil drilling rigs

Oil prices settled lower on Friday as analysts forecast a surplus in supply next year due to weak global demand, coinciding with anticipation of increased "PEC+ supplies.

At the close, Brent crude futures for February 2025 delivery dropped 1.35%, or 97 cents, to $71.12 a barrel, recording a weekly loss of 1%.

Meanwhile, WTI crude futures for January 2025 delivery decreased by 1.6%, or $1.10, to $67.20 a barrel, marking a weekly loss of 1.2%.

According to a note issued on Thursday, Morgan Stanley expects Brent crude to average $70 per barrel in the second half of 2025, up from its previous forecast range of $66 to $68 per barrel.

This came after OPEC+ postponed its plans to begin increasing oil production by three months to April 2025. The group also announced that the gradual phase-out of the 2.2 million barrels per day supply cut would now extend until September 2026, nine months later than previously scheduled.