Oil prices experienced a slight decline in early trading on Friday, setting course for a weekly loss, amidst uncertainty regarding global energy supplies. This follows the announcement that US President Donald Trump and Russian President Vladimir Putin have agreed to a meeting in Hungary to discuss the ongoing war in Ukraine.
Brent crude futures decreased by 8¢, a 0.13 per cent drop, to $US60.98 a barrel at 0030 GMT. Similarly, $US West Texas Intermediate futures fell by 9¢, or 0.16 per cent, to $US57.37. Over the course of the week, both benchmarks have declined by nearly 3 per cent. This downturn is partly attributed to the International Energy Agency’s projection of a growing supply surplus in 2026.
Adding to the downward pressure on prices, the Energy Information Administration reported on Thursday that US crude inventories had increased by 3.5 million barrels, reaching a total of 423.8 million barrels last week. This figure exceeded analysts’ expectations from a Reuters poll, which had anticipated a smaller rise of 288,000 barrels. The larger-than-expected inventory build is largely attributable to refineries going into fall turnarounds.
The EIA data also revealed that US production has risen to 13.636 million barrels per day, marking a record high. The meeting between Trump and Putin, a surprise development given Moscow’s concerns about potential fresh US military support for Kyiv, is anticipated to take place within the next two weeks in Budapest.
