MUSCAT: Brent crude futures recorded a modest decline on Friday, slipping by 23 cents, or 0.3 percent, to trade at $66.77 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude dropped by 19 cents, or 0.3 percent, to settle at $63.29. This movement reflects cautious sentiment in the oil market as traders brace for the upcoming OPEC+ meeting on Sunday, where member states are expected to deliberate on whether to adjust production quotas in response to shifting global demand patterns.
The sustained weakness in oil prices underscores broader concerns regarding the balance of supply and demand. Market participants are closely evaluating how OPEC+ decisions may align with recent economic signals, including slower growth projections in major consuming nations and fluctuating industrial activity. The looming meeting is viewed as pivotal, given its potential to influence not only near-term prices but also broader market stability in the months ahead. Any decision on supply adjustments will carry significant implications for producers and consumers alike.
Adding to the downward pressure on prices, U.S. crude inventories unexpectedly rose by 2.4 million barrels last week, according to government data. This development defied analyst forecasts of a 2 million-barrel draw, highlighting the role of refinery maintenance season in limiting demand for crude inputs. The surprise build has fueled speculation that stockpiles could remain elevated if refiners continue to reduce operational capacity, a factor that could extend the current softness in oil benchmarks.
Despite the declines, many analysts remain cautiously optimistic, emphasizing that structural fundamentals in the oil market remain intact. Global demand recovery is still progressing, albeit unevenly, and the extent of OPEC+ discipline in adhering to production targets will be crucial in shaping price trajectories. While short-term volatility appears inevitable, longer-term prospects are expected to hinge on the interplay of supply restraint, economic recovery momentum, and geopolitical stability across key energy-producing regions.
