Oil prices held steady on Friday, with Brent crude rising 6 cents (0.08%) to $72.94 per barrel, and WTI gaining 8 cents (0.12%) to $69.46. Both benchmarks finished the week down about 2.5%. Cooling U.S. inflation supported expectations for rate cuts, weakening the dollar and boosting oil demand prospects. However, concerns lingered about China’s weakening demand, as Sinopec projected the country’s oil imports could peak by 2025 and overall consumption by 2027.
OPEC+ continues to face challenges in managing supply, cutting its 2024 demand growth outlook for the fifth consecutive month. J.P. Morgan expects a surplus of 1.2 million barrels per day by 2025 due to rising non-OPEC+ supply and stable OPEC output. Meanwhile, geopolitical pressures remain, with the EU and Britain tightening sanctions on Russian oil and considering stricter price caps to curb circumvention through the shadow fleet.