Oil prices edged higher on Friday, with West Texas Intermediate (WTI) crude climbing toward $63 per barrel, though the market remained on track for a weekly loss as oversupply concerns continued to weigh on sentiment. The modest rebound was seen more as a technical bounce than a change in the broader outlook.
WTI traded near $62.85, up slightly on the day, as traders responded to bargain-hunting after prices slid earlier in the week. However, gains remained capped by persistent fears of a global supply glut, particularly as U.S. production remains near record highs and output from key OPEC+ members has shown little sign of tightening.
The oil market has also been under pressure from weaker-than-expected demand forecasts, with recent data pointing to sluggish economic activity in China and slower-than-hoped recovery in Europe. The International Energy Agency (IEA) earlier this week revised down its global demand projections, citing macroeconomic headwinds and high inventory levels.
Despite the day’s uptick, sentiment remains fragile. Analysts say traders are wary of committing to the upside until there are clearer signals of either a production cut or sustained demand pickup. U.S. inventory figures released midweek showed a surprise build, adding to the bearish narrative and reinforcing worries about oversupply.
Technical indicators suggest WTI may remain range-bound, with resistance seen near $63.50 and support around $61.00. Without a major catalyst, price action is expected to remain volatile but directionless, with sentiment largely driven by global growth signals and supply-side commentary from OPEC+.
For now, crude oil remains vulnerable to broader market trends, with geopolitical risks, currency fluctuations, and economic data likely to steer near-term direction. The current rebound may offer only temporary relief as the market continues to digest the imbalance between supply and demand.
