Oil prices extended their decline on Friday, weighed down by reports of rising crude stockpiles in the United States and renewed concerns over geopolitical tensions. Data released earlier in the week showed U.S. inventories climbing to their highest levels in months, amplifying fears of an oversupplied market as demand uncertainties persist.
Investor sentiment was further dampened by speculation around policy actions by former President Donald Trump, including potential shifts in energy policy. Analysts highlighted that these moves could introduce volatility in global oil markets, particularly as OPEC+ nations continue grappling with production cuts aimed at stabilizing prices.
The downturn in oil prices has also been exacerbated by a stronger U.S. dollar, which makes the commodity more expensive for holders of other currencies. Brent crude fell to $74.30 a barrel, while WTI slipped below $70, marking a weekly decline of over 3%. Traders remain cautious as they await further clarity on inventory trends and policy developments.
Market participants are keeping a close eye on upcoming economic indicators, including U.S. jobs data, which could influence demand forecasts. In the short term, persistent stockpile growth and geopolitical uncertainties are expected to maintain pressure on prices, leaving investors wary of a sustained recovery.
