U.S. crude oil inventories increased last week as imports rose and exports fell, according to data from the U.S. Energy Information Administration.
Natural gas and oil markets weaken as oversupply fears rise despite a 1.9M-barrel inventory draw. Technical signals keep the Natural Gas and Oil Forecast tilted bearish.
Oil prices edged higher in early Asian trade after falling overnight.
OPEC+ is likely to leave output levels unchanged at its meeting on Sunday while focusing talks on a theoretical topic of how much oil its members can produce so the group can decide future policies, three OPEC+ sources said.
Oil prices dropped amid concerns about a potential surplus, despite ongoing geopolitical tensions, while natural gas prices remain bullish above key support levels.
Traders were likely weighing the prospect of a Ukraine-Russia peace deal that could deflate political risk from an already well-supplied market, UOB said.
The U.S. and Kyiv have made “big progress” toward a peace proposal to put to Russia, President Donald Trump said on Monday.
Oil prices were lower in early Asian trade amid concerns of more supply hitting the market.
Russian supply returns quickly, China boosts stockpiles, and mixed U.S. inventory data keep crude under pressure with a bearish weekly outlook.
U.S. sanctions on Russia's largest oil producers, Lukoil and Rosneft, have kicked in and are starting to test Moscow's ability to sell crude, its economic lifeblood.
Crude oil struggled this week as both WTI and Brent failed to hold early rallies, instead settling into well-defined trading ranges. With strong floors and firm resistance levels, markets appear poised for continued short-term range trading until a clearer catalyst emerges.
Crude oil weakens on Friday as both WTI and Brent face heavy overhead resistance, with supply concerns and ineffective sanctions capping rallies. Price action suggests a developing range, making short-term exhaustion points attractive for potential fading.