Crude oil futures are trending lower in early trading but are on track for weekly gains of over 1.5%, primarily driven by concerns over supply disruptions and a weakening U.S. dollar.
Key Drivers of Oil Price Movement
- Supply disruptions in Kazakhstan:
- The attack on a key pipeline in Russia by a Ukrainian drone has affected Kazakhstan’s oil flow, contributing to price support.
- OPEC+ output plans:
- There are expectations that OPEC+ may delay its planned increase in production, keeping prices supported.
- Geopolitical concerns:
- The market remains sensitive to U.S.-Russia talks aimed at resolving the ongoing conflict in Ukraine.
U.S. Data Impact
- Crude stockpile increase:
- U.S. crude inventories rose more than anticipated, which typically weighs on prices.
- Gasoline and distillates decline:
- However, gasoline inventories and distillate fuel stocks decreased, partially offsetting the crude inventory rise.
Market Sentiment and Analyst View
- Lack of clear direction: Analysts from Saxo noted that the market remains uncertain, with geopolitical risks and supply disruptions balanced by concerns about global demand.
Price Movement
- Brent crude is down by 0.7%, priced at $75.93 per barrel.
- WTI falls by 0.8%, trading at $71.92 per barrel.