06/01/26

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WTI crude oil resumed its upward trajectory in Friday’s Asian trading session, drifting close to $59.60 per barrel. This rebound is partly attributed to a softer US dollar, which makes commodities priced in dollars more attractive to international buyers. Nonetheless, the outlook remains cautious amid mounting concerns of oversupply in global markets.

Recent U.S. inventory reports have heightened worries. The Energy Information Administration (EIA) announced that crude oil stockpiles increased by approximately 5.2 million barrels for the week ending October 31. This follows a significant reduction of nearly 6.9 million barrels the previous week. Similarly, the American Petroleum Institute (API) reported an accumulation of 6.5 million barrels, contrasting with a 4 million barrel draw in the prior week. These figures suggest a swelling supply that may weigh on prices if sustained.

Geopolitical developments are providing some support for oil prices. Reports indicate that the United States may consider military action against Venezuela, one of the world’s notable oil producers. Meanwhile, Russia has taken steps to restrict its crude exports; the Black Sea port of Tuapse has suspended fuel shipments, and its key refinery halted operations following Ukrainian drone attacks over the weekend. Such disruptions could tighten supply somewhat, offering limited price support amid prevailing supply-glut concerns.

WTI, a benchmark for U.S. crude, is characterized as “light” and “sweet” due to its lower density and sulfur content. This grade is highly valued for its ease of refining and is traded extensively at global markets. The price is heavily influenced by supply and demand dynamics, which are affected by global economic activity, geopolitical events, and OPEC’s production policies. Fluctuations in the US dollar’s value also impact oil prices, with a weaker dollar generally encouraging higher prices.

In summary, while recent inventory data and geopolitical tensions have lent some upward momentum to WTI, ongoing oversupply concerns remain dominant. Market participants continue to monitor inventory reports and geopolitical developments closely, recognizing their significant influence on oil price trajectories.