Oil on Friday fell to a two-week low as the International Energy Agency (IEA) warned of a looming supply glut.

Futures in New York ended the week 3 percent lower after four straight days of declines.

Sentiment continued to be dominated by an IEA report highlighting the challenge facing OPEC and its allies in balancing the market as production surges from their competitors.

US crude production is expected to grow 1.3 million barrels per day next year at current prices, IEA executive director Fatih Birol said at an event in Washington on Friday.

Also fueling oversupply concerns, US President Donald Trump was reportedly weighing easing sanctions on Iran, a move that RBC Capital Markets estimated could bring back about 700,000 barrels per day to the market.

Meanwhile, the US and China showed signs of rapprochement in their trade war and Saudi Arabia’s new energy minister downplayed oil demand concerns, leaving any talk of deeper output cuts to OPEC’s next ministerial meeting in December.

“Lackluster investor positioning, potential thawing of the trade war and concerns of an Iran deal have clouded both investor appetite, as well as the fundamental market outlook,” RBC Capital Markets commodity strategist Michael Tran said. “Oil prices are caught in a cycle of trendless volatility.”

West Texas Intermediate crude for delivery next month declined US$0.24, or 0.4 percent, to settle at US$54.85 per barrel on the New York Mercantile Exchange.

Brent for November delivery fell US$0.16 to US$60.22 per barrel on the ICE Futures Europe Exchange, and traded at a US$5.42 premium to West Texas Intermediate for the same month. The contract declined 2 percent for the week.

In other energy trading, wholesale gasoline was unchanged at US$1.55 per gallon and heating oil declined US$0.01 to US$1.88 per gallon, while natural gas rose US$0.04 to US$2.61 per 1,000 cubic feet.

Gold fell US$7.80 to US$1,490.90 per ounce and silver fell US$0.60 to US$17.44 per ounce, while copper rose US$0.06 to US$2.68 per pound.

Additional reporting by AP