HOUSTON, February 20, 2026, 12:34 (CST) — Regular session
Oil prices eased on Friday but stayed near six-month highs, with Brent futures down 19 cents at $71.47 a barrel and U.S. WTI down 14 cents at $66.29 by 11:36 a.m. CST. A U.S. Supreme Court ruling on Trump’s emergency tariff powers barely dented the trade, and both benchmarks were still up about 5.3% for the week. (Reuters)
The bigger driver is the standoff with Iran and the risk that shipping through the Strait of Hormuz could be disrupted; about a fifth of global oil supply moves through the passage. “We’re caught in between anticipation … and denial an attack’s going to happen,” said Phil Flynn, senior analyst at Price Futures Group. Markets are also weighing talk of OPEC+ lifting supply from April, even as traders bet a strike, if it comes, is more likely next week than today. (CNA)
Trump said on Friday he was considering a limited military strike on Iran, but offered no details on scope or timing. Asked if it was meant to pressure Tehran into a nuclear deal, he replied: “I guess I can say I am considering” it. (Reuters)
Oil had rallied into Thursday’s settlement, when Brent rose 1.9% to $71.66 and WTI gained 1.9% to $66.43, both the highest closes in about six months. “The market will continue to rally in anticipation of something happening,” said Andrew Lipow, president of Lipow Oil Associates. Trump appeared to set a 10-day deadline for a deal, and Iran planned a joint naval exercise with Russia after briefly shutting the Strait of Hormuz during drills. (Reuters)
In the U.S., the Energy Information Administration said crude inventories fell by 9 million barrels to 419.8 million in the week ended Feb. 13, against expectations for a 2.1-million-barrel rise. “Massive draws across the board and stronger U.S. oil demand,” Giovanni Staunovo, a commodity analyst at UBS, said. (Reuters)
Speculators have also been reaching for upside protection, with heavier buying of Brent call options — contracts that pay out if prices rise — according to Saxo Bank analysis cited by brokers. “Market focus has clearly shifted to escalating Middle East tensions,” said Priyanka Sachdeva, a senior market analyst at Phillip Nova. (Business Recorder)
OPEC said the eight OPEC+ countries that hold monthly reviews of the market will meet again on March 1. The date matters because any tweak to the group’s supply stance can move crude quickly, even without barrels changing hands that day. (OPEC)
But the rally is running into an old problem: too much supply. JP Morgan analysts Natasha Kaneva and Lyuba Savinova wrote that their balances still point to “sizable surpluses later this year,” and said cuts of 2 million barrels per day would be needed to avoid excess inventory builds in 2027. (Zawya)
Traders now turn to next week’s round of U.S. data and any fresh signals from Washington and Tehran. The EIA’s next weekly petroleum status report is due on Feb. 25, after Thursday’s release. (Eia)
