Trump-Putin on the Radar, Russian Supply Concerns
Oil prices weakened again and are poised to post a third straight losing streak, the longest streak since March. Brent is near $61/barrel (around -2.8% for the week), while WTI is trading above $57.
The main causes: the increasingly dominant oversupply story and US-China trade tensions threatening demand in the world's two largest oil consumers. The IEA this week also raised its projection for global oversupply next year to almost 20%, adding to price pressure.
On the geopolitical front, US President Donald Trump said he would meet Vladimir Putin in "the next two weeks" to discuss ending the Ukraine war, raising the possibility of a loosening of Russian barrel flows. At the same time, Western countries continue to tighten energy sanctions; Indian refiners have said they are reducing (but not stopping) purchases of Russian oil while awaiting official direction from New Delhi.
US data provided mixed signals: crude inventories rose for a third straight week (the highest since early September), but stockpiles at Cushing, Oklahoma, fell to their lowest since July. At 8:28 a.m. Singapore time, Brent Dec. was $60.97 (-0.2%) and WTI Nov. was $57.37 (-0.2%).
Bottom line:
-The oversupply narrative is strengthening + US-China tensions are suppressing demand.
-The Trump-Putin discourse has the potential to loosen Russian supply.
-US inventories are rising, but Cushing is falling → mixed signals.
-Without a bullish catalyst, the price bias remains bearish in the short term. (Asd)
Source: Newsmaker.id
