Crude oil extended its winning streak, marking its longest run of weekly gains since July, as supply constraints and resilient demand continued to push prices higher. The market remains supported by expectations of tighter global supply, with OPEC+ maintaining production cuts and geopolitical risks adding further uncertainty to supply chains.
The U.S. dollar’s strength has done little to slow oil’s upward momentum, with traders focusing on signs of supply tightness. Rising refinery demand and declining inventories have provided additional support, reinforcing bullish sentiment despite macroeconomic headwinds. Brent and WTI crude benchmarks have both climbed steadily, fueled by expectations of constrained output in the coming months.
Geopolitical concerns remain a key driver, with tensions in the Middle East and potential supply disruptions keeping risk premiums elevated. Meanwhile, demand from China and India, two of the world’s largest crude importers, has remained steady, adding further upside pressure. Although concerns over slowing global growth persist, the immediate impact on oil demand appears limited.
Market participants are also eyeing U.S. stockpile data, which could offer further insight into near-term supply dynamics. A sharp drop in inventories could reinforce the bullish trend, while any surprise builds may slow the rally. However, with OPEC+ signaling no immediate changes to production policy, expectations of supply tightness continue to dominate sentiment.
As oil prices hold near multi-month highs, traders will be watching for any shifts in policy from major producers and further developments in global demand trends. Until then, the market remains positioned for continued strength, with supply constraints outweighing broader economic concerns.
