Oil prices recovered on Friday, rebounding from midday losses as markets reacted to reports that Hungary may continue using Russian crude oil following a White House meeting between U.S. President Donald Trump and Hungarian Prime Minister Viktor Orban. Brent crude settled up 25 cents, or 0.39%, at $63.63 per barrel, while WTI gained 32 cents, or 0.54%, to close at $59.75. Both benchmarks still finished the week about 2% lower as global producers continue to raise output.
Traders said sentiment improved on speculation that Hungary could be granted an exemption to U.S. sanctions targeting Russian energy companies, potentially easing tensions within the European Union.
Earlier in the day, prices fell after the U.S. Federal Aviation Administration ordered flight reductions due to air traffic controller shortages tied to the ongoing government shutdown, weighing on jet fuel and diesel demand. “The fact that we’re shutting down flights is taking out a lot of diesel demand,” said one market analyst.
Supply concerns continued to dominate market direction. U.S. crude inventories rose by 5.2 million barrels last week, according to the Energy Information Administration, while gasoline and distillate stocks declined. OPEC+ reaffirmed plans to increase production by 137,000 barrels per day in December, but also to pause further hikes in early 2026 amid concerns about oversupply.
Saudi Arabia announced a sharp cut to December prices for Asian buyers, reflecting the well-supplied market. However, sanctions on Russia and Iran continue to disrupt shipments to China and India, supporting some floor under prices.
China’s crude imports rose 2.3% in October from September and 8.2% year-over-year, underscoring strong refinery runs in the world’s largest oil importer. Meanwhile, Swiss trader Gunvor withdrew a bid to acquire Lukoil’s foreign assets after U.S. officials opposed the deal — a sign that Washington intends to maintain strict enforcement of sanctions.