West Texas Intermediate (WTI) crude oil prices remained within a narrow range during the Asian trading session on Friday, consolidating the gains made over the past four days. Currently hovering around the $72.40 mark, the commodity is just below the one-week high reached on Thursday and appears poised to end a four-week losing streak.
On Thursday, the Energy Information Administration (EIA) reported a rise in US crude oil stockpiles, while gasoline and distillate inventories saw declines. This data, coupled with ongoing concerns over potential supply disruptions in Russia, has provided support for oil prices. Speculation around a possible peace agreement between Russia and Ukraine has diminished following a surge in Ukrainian drone attacks on Russian oil facilities.
Additionally, the recent dip in the US dollar to its lowest level since December 10 has further buoyed oil prices, as a weaker dollar typically supports dollar-denominated commodities. However, fears surrounding potential economic repercussions from US President Donald Trump’s trade tariffs have led to caution among traders, limiting bullish sentiment and preventing further price rallies.
Concerns about slowing demand from key markets, including the Eurozone and China, also weigh on market sentiment, tempering optimism for a sustained recovery. Traders are now awaiting the release of global flash purchasing managers’ indexes (PMIs), which could provide new insights into global economic conditions and influence short-term trading decisions for crude oil.
