FX.co ★ Oil Set for Second Weekly Decline

WTI crude oil futures edged up to approximately $59.7 per barrel on Friday, although they remained close to a two-week low and appeared set for a second consecutive weekly decline. Concerns about a potential oversupply continued to influence the market. Last month, production increased among OPEC+ member nations as key producers resumed previously halted output, and non-OPEC countries also amplified their supply. In reaction to the ample supply, Saudi Arabia, the globe's largest oil exporter, reduced its December crude prices for buyers in Asia. Further challenges were presented by ongoing weakness in demand. Concurrently, supply risks persisted, with the United States' restrictions on Russian oil imports and Ukraine's assaults on Russian energy infrastructure. India, a significant oil importer, is diversifying its supply sources due to sanctions complicating the acquisition of Russian crude, as evidenced by Reliance offloading cargoes from the Middle East. Additionally, Chinese state-run oil companies have paused purchasing Russian crude transported by sea.