Crude oil prices edged slightly lowered on Friday, consolidating after a significant surge in the previous session, but benchmarks remain poised for a solid weekly gain.
The market is currently digesting the impact of sweeping new U.S. sanctions imposed on Russia’s two largest oil companies, Rosneft and Lukoil.
This move, tied to escalating geopolitical tensions, jolted prices higher on Thursday by amplifying near-term supply risks as traders and some Asian buyers reassess Russian energy flows.
Meanwhile, US fundamentals offer some support. The latest EIA report confirmed inventory draws across the board, with commercial crude stocks falling by 1.0 million barrels, while gasoline and distillates dropped by 2.1 million and 1.5 million barrels, respectively.
However, additional upside could be capped by increasing output from OPEC and non-OPEC crude producers as well as expectations of oversupply.
