Oil prices diverge, traders eye global demand
At the start of Friday’s European session, West Texas Intermediate (WTI) crude oil prices fell to $58.96 per barrel, down from Thursday’s close of $59.02. This marks a limited but persistent decline in the bearish trend of U.S. crude oil.
In contrast, Brent crude posted modest gains, rising from $62.89 on Thursday to $63.04 in today’s trading. This divergence between the two benchmarks highlights regional differences and fundamental factors shaping the market.
The drop in WTI prices today is influenced by technical factors and reduced short-term demand in the domestic market of the United States. Analysts point to lower refinery activity, rising commercial inventories, and uncertainty over economic growth as key reasons behind the selling pressure on U.S. light crude.
From a technical perspective, a break below the $59 support level could pave the way for further declines toward $58.50. However, if demand rebounds or positive data emerges from the U.S. Energy Information Administration (EIA), WTI could recover above $59.50.
On the other hand, Brent crude has been supported by Asian demand and reduced supply from certain Middle Eastern producers. Increased imports by China and lower Russian exports through the Black Sea have contributed to Brent’s recent strength.
Global market analysts suggest that if Brent prices hold above $63, the next target could be in the $63.50–$64 range. Still, overall sentiment remains cautious, with short-term volatility expected.
Summary: In today’s trading, WTI crude slipped below $59, while Brent crude climbed above $63. The contrasting performance of these two benchmarks reflects regional conditions, fundamental drivers, and market expectations for supply and demand. If the divergence continues, traders will need to closely monitor technical levels and economic developments in the United States and abroad.