Oil prices advanced, buoyed by a weakening U.S. dollar that headed for its worst week in seven months. This currency move countered persistent concerns over a global supply glut, as the International Energy Agency projects stockpiles will swell by 3.7 million barrels daily this year. The inverse dollar-oil relationship provided immediate market relief.

The IEA's projection underscores the fundamental bearish case for crude, with output continuing to outpace demand growth. A softer dollar makes dollar-denominated commodities like oil cheaper for holders of other currencies, temporarily boosting demand. This dynamic often creates short-term price spikes even amid oversupply forecasts, a pattern familiar to energy traders.

Looking ahead, investors will watch whether the dollar's slide persists and if actual inventory data confirms the IEA's 3.7 million barrel daily increase. Any deviation could shift sentiment sharply. For now, the market navigates a classic tug-of-war between macroeconomic currency moves and underlying physical market fundamentals, with OPEC+ policy decisions remaining a critical wildcard.