Oil prices rise, weekly loss still looms

November 07, 2025 (MLN): Oil prices edged higher on Friday after three consecutive days of declines, supported by short-covering and bargain hunting. However, both Brent crude and West Texas Intermediate (WTI) remain on track for a second straight weekly loss of around 2%, pressured by rising global output and weakening U.S. demand signals.

Brent crude futures went up by $0.28, or 0.44%, to $63.66 per barrel.

West Texas Intermediate (WTI) crude futures decreased by $0.29, or 0.49%, to $59.72 per barrel by [11:00 am] PST.

The latest price drop follows a surprise 5.2 million-barrel build in U.S. crude inventories, which reignited fears of oversupply. According to the Energy Information Administration (EIA), the increase was driven by higher imports and reduced refining activity, while gasoline and distillate stocks fell.

Tony Sycamore, analyst at IG Markets, said the inventory surge, combined with “risk-aversion flows, a stronger dollar, and the ongoing U.S. government shutdown,” has weighed heavily on market sentiment. “WTI prices are likely to remain range-bound between $58 and $62 per barrel in the near term,” he added, noting that a potential reopening of the U.S. government could offer short-term upside.

The prolonged U.S. government shutdown the longest in history has fueled worries over economic growth, with reports of weaker labor market data and flight reductions at major airports due to staffing shortages.

Meanwhile, OPEC+’s recent decision to slightly increase output in December while pausing additional hikes for the first quarter of next year has added mixed signals to the market. The move reflects the group’s cautious stance amid fears of a supply glut.

In a further sign of competitive pricing, Saudi Arabia the world’s top crude exporter sharply reduced its December selling prices for Asian buyers, signaling confidence in supply availability.

Despite ample inventories, geopolitical factors continue to lend some support to prices. Western sanctions on Russia and Iran have disrupted energy flows to major importers such as China and India, tightening regional supplies.

Adding to market tensions, Swiss commodity trader Gunvor announced on Thursday that it had withdrawn its proposal to acquire foreign assets of Russia’s Lukoil after the U.S. Treasury labeled the company a “puppet” of Moscow and voiced opposition to the deal.

Overall, traders remain cautious as oil markets balance between rising supply pressures, softer demand outlooks, and geopolitical uncertainties, keeping price volatility elevated in the weeks ahead.

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