CALGARY — Oil prices are climbing as fears of a global supply glut begin to ease, according to several market analysts.
Brent crude rose above $70 US per barrel this week for the first time since mid-2025 amid heightened geopolitical tensions involving Iran. West Texas Intermediate was trading above $65 US per barrel, while Western Canadian Select was priced at just over $53 US per barrel.
Analysts say concerns about oversupply that dominated the second half of last year are fading as demand forecasts for 2026 are revised higher by major energy agencies. The International Energy Agency has raised its outlook for global oil demand growth next year, citing a recovery in petrochemical feedstock use, though overall growth is expected to remain modest.
Low prices are also beginning to curb U.S. shale output, with some producers suspending drilling as margins narrow. Analysts expect oil prices to average in the low to mid-$60 US range per barrel in 2026.
Energy markets remain volatile, with U.S. natural gas prices also surging recently due to extreme Arctic weather straining supply and boosting heating demand.
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