Oil climbs as weak dollar and risk-on mood counter glut worries

Oil gained as a weaker dollar and risk-on mood in wider markets offset concerns about higher supplies in the US and elsewhere.

Brent crude rose toward $65 a barrel, headed for a fifth weekly gain, while West Texas Intermediate was near $60. The US currency dropped, making commodities cheaper for overseas buyers, with the Bloomberg Dollar Spot Index down by 0.8% this week, the most since June. In wider markets, shares advanced along with a broad range of commodities.

Crude has edged higher this month, following a slump in 2025 that was driven by concerns about a global glut spurred by supply increases from OPEC+ as well as drillers outside the alliance. Earlier this week, the International Energy Agency reiterated its outlook that output was expected to run ahead of demand this year by a wide margin, boosting stockpiles.

“US dollar weakness is offering support to prices,” said Warren Patterson, head of commodities strategy at ING Groep NV. “The outlook for the market remains bearish, but the raft of geopolitical and supply risks means the outlook for lower prices is taking longer to materialize.”

There have been signs of increased supplies. In the US, nationwide crude inventories expanded for a second week, with the 3.6 million barrel build pushing holdings to the highest level since November.

Flows are also returning in the Mediterranean and Black Sea region, while Venezuelan oil finds its way into global markets following the US intervention.

© 2026 Bloomberg

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