Singapore — Oil prices moved slightly higher on Friday after three days of losses, but they remain set for a second straight weekly decline as rising supplies and weak demand in the United States continue to weigh on the market.
Brent crude rose 21 cents, or 0.33%, to $63.59 a barrel, while U.S. West Texas Intermediate (WTI) gained 22 cents, or 0.37%, to $59.65 in early trading.
Both benchmarks are expected to finish the week about 2% lower, pressured by a surprise jump in U.S. crude inventories and concerns about slowing economic activity.
U.S. Stock Build Adds Pressure
U.S. government data showed crude inventories increased by 5.2 million barrels last week, much higher than expected, as imports rose and refineries reduced output.
“The build reignited oversupply fears,” said Tony Sycamore, market analyst at IG Markets. He added that worries over the U.S. government shutdown and stronger dollar have also weighed on sentiment.
The prolonged shutdown has already caused flight cuts at major airports and is seen as hurting consumer and business confidence.
OPEC+ Output and Price Outlook
Earlier this week, OPEC and its allies (OPEC+) decided to raise production slightly in December, while pausing further increases in early 2026 to prevent a market glut.
In response, Saudi Arabia, the world’s top oil exporter, lowered prices for its December crude shipments to Asia, reflecting weaker demand and rising global inventories.
Despite these moves, disruptions caused by sanctions on Russia and Iran have limited some of the downward pressure on prices.
Market Range
Analysts expect WTI to trade between $58 and $62 per barrel in the short term.
“A reopening of the U.S. government could support a small rebound,” Sycamore said, “but any rally is likely to be capped by high stocks and soft demand.”
