NEW YORK – West Texas Intermediate (WTI) crude oil futures fell on Friday, capping off a week of losses as traders weighed geopolitical developments and signs of weakening global demand.
WTI crude dropped 1.8% to settle at $62.80 per barrel, bringing its decline for the week to approximately 1%.
Market sentiment was heavily influenced by anticipation surrounding talks between U.S. President Donald Trump and Russian President Vladimir Putin, where the possibility of a ceasefire in Ukraine is a key topic. Expectations of a resolution are putting downward pressure on prices, as a ceasefire could eventually lead to an increase in Russian oil production hitting the global market. However, analysts note that any easing of sanctions would require U.S. Congressional approval, making a quick supply surge unlikely.
Adding to the bearish sentiment were weaker-than-expected economic figures from China, a crucial driver of global oil demand. The country’s factory output growth slowed to an eight-month low, while retail sales expanded at their slowest pace since December. Although China’s refinery throughput was higher, a concurrent rise in its oil product exports suggested that domestic fuel demand is flagging.
Further contributing to the downward pressure were growing oil supplies from OPEC+ and the possibility of higher U.S. interest rates, which can strengthen the dollar and dampen economic growth.
Overall, market forecasts continue to point toward a potential oil surplus through mid-2026, maintaining a bearish outlook on prices in the medium term.
