Oil prices rose marginally in Asian trade on Friday, and were set for a muted weekly performance amid growing concerns over slowing U.S. demand and a supply glut in the coming quarters.
Some resilience in the dollar– which rebounded from over three-year lows this week despite an interest rate cut by the Federal Reserve, put some pressure on oil prices.
Market focus also remained squarely on more U.S. sanctions on Russian oil and major buyers, after President Donald Trump admitted that ceasefire efforts were tougher than he had initially anticipated.
Brent oil futures for November rose 0.1% to $67.53 a barrel, while West Texas Intermediate crude futures rose 0.1% to $63.31 a barrel by 21:32 ET (01:32 GMT).
Oil heads for muted weekly finish
Brent and WTI futures were both trading up around 1% this week following largely mixed signals on demand and supply.
Increased hostilities between Russia and Ukraine spurred bets on more supply disruptions in Moscow, a notion that offered oil prices some support earlier this week.
But this was offset by fears of cooling U.S. demand, especially as inventory data showed a sharp increase in distillate stockpiles.
Mixed market reactions to the Fed also kept oil trading rangebound, with the dollar rising despite the Fed cutting interest rates and signaling that it will cut rates further in the coming months.
Still, lower U.S. interest rates are expected to help shore up demand in the coming months, although fuel demand is still expected to weaken in the winter season.
Continued signs of a cooling U.S. labor market also kept oil markets on edge over slowing demand.
Kazakhstan resumes BTC oil exports, Nigeria lifts emergency in key state
Expectations of higher supplies were furthered by Kazakhstan resuming oil supplies via the Baku-Tbilsi-Ceyhan (BTC) pipeline earlier in September, the government said this week.
Supplies through the route were suspended in August due to contamination issues. The pipeline is mainly used to export oil from three key oil fields, and also allows Kazakhstan to export oil without depending on Russia as a main route.
Elsewhere, Nigeria lifted emergency rule in its oil-rich Rivers State after six months, stating that a constitutional crisis in the region was resolved.
The region is a key exporting hub for Nigeria’s oil industry, with militants in the past having targeted local pipelines.
Source :
https://www.investing.com/news/commodities-news/oil-prices-muted-as-markets-weigh-us-demand-fears-supply-outlook-4246023
