Oil prices held steady in Asian trade Friday but remained on track for weekly losses after tumbling nearly 3% in the previous session. Brent crude edged up 0.1% to $67.56 per barrel, while West Texas Intermediate gained 0.1% to $62.87 per barrel. Both benchmarks were set for 1% weekly declines as forecasts of a sizeable supply surplus weighed on sentiment.

The International Energy Agency warned of a global oil surplus of just over 3.7 million barrels per day in 2026, highlighting a significant supply overhang. The agency also reported that global oil stockpiles expanded last year at one of the fastest rates since the pandemic, underscoring ample supply buffers. Adding to bearish pressure, the Energy Information Administration reported a crude inventory build of 8.53 million barrels this week, far exceeding market expectations and marking the largest increase since January 2025.

Investors were also assessing geopolitical risks after Donald Trump said negotiations over a potential nuclear deal with Iran could stretch for as long as a month. The prospect of drawn-out talks reduced immediate fears of supply disruptions in the Middle East, tempering the geopolitical risk premium that had supported prices earlier. Market participants remained cautious ahead of the U.S. consumer price index data due later Friday, which could offer fresh clues on the Federal Reserve's policy path.