HOUSTON, Nov 13 (Reuters) - Oil prices sagged on Friday, set for a second straight weekly decline, as signs of a growing global supply surplus weighed on the market and Washington's focus on blockading Iran while ramping up other economic pressures allayed fears of renewed hostilities in the nine-month war.
Brent futures were down 5 cents, or 0.05%, to $95.77 a barrel at 11:46 a.m. CDT (1746 GMT). US West Texas Intermediate futures fell 17 cents, or 0.19%, to $88.57 a barrel.
For the week, Brent and WTI were both on track for a drop of around 2%. The benchmarks fell 16% and 13%, respectively, last week.
With lower geopolitical risk from the US-Israeli war against Iran and the release on Friday of an International Energy Agency report pointing to a rise in the global oil surplus, the market is going through a major shift.
"It's clear the biggest fear a few months ago was a fear of shortage," said Phil Flynn, senior analyst with the Price Futures Group. "Now it looks like the biggest fear is a surplus."