SINGAPORE: Oil prices rose slightly on Friday after three days of declines, as markets remained cautious over excess supply and slowing demand in the U.S., though Brent and WTI are on track for a second consecutive week of losses.
Brent crude futures increased 21 cents, or 0.33%, to $63.59 a barrel, while U.S. West Texas Intermediate (WTI) rose 22 cents, or 0.37%, to $59.65 a barrel. Both benchmarks have fallen about 2% this week amid higher global production.
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The drop in prices followed a surprise 5.2 million-barrel U.S. inventory build, raising fears of oversupply, alongside ongoing concerns over the U.S. government shutdown and its impact on economic activity. Analyst Tony Sycamore noted that WTI prices are expected to remain in the $58–$62 per barrel range in the near term.
OPEC+ recently announced a slight increase in output for December but paused further hikes for the first quarter of next year to prevent a supply glut. Saudi Arabia also cut December crude prices for Asian buyers in response to well-supplied markets. Meanwhile, geopolitical factors such as sanctions on Russia and Iran continue to affect global supply.
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Despite these pressures, analysts point to potential short-term upside if the U.S. government reopens within a week. However, persistent inventory builds and weak demand are likely to limit any sustained rally in oil prices.