Worries persist due to downward US economic data, and prices are supported by Chinese purchasing and war risks
Ukrainian drones attacked Russia's largest oil terminal. Oil prices rose on Friday after a Ukrainian drone strike suspended loading at the largest port in western Russia, but concerns about US demand limited these gains.
Prices are supported by Chinese purchasing and war risks.
Brent and WTI indices fell sharply on Thursday. Brent crude futures closed up 62 cents, or 0.93%, at $66.99 a barrel on Friday. WTI crude oil closed up 32 cents, or 0.51%, at $62.69.
Ukraine carried out a drone attack on the northwestern Russian port of Primorsk, causing oil loading operations to be suspended overnight. These attacks on Russian energy infrastructure could depress Russian crude oil and refined product exports.
However, gains were limited as investors continued to focus on the revised US employment report and high inflation figures released earlier this week. Economic data is not supporting a rally, with the overall trend downward.
Markets are also closely watching the Trump administration's sanctions or tariffs aimed at reducing India and China's use of Russian crude oil. Tariffs imposed on India and China have the potential to harm exports, and under these circumstances, the withdrawal of Russian oil from the market is inevitable.
However, the International Energy Agency (IEA) reported on Thursday that global oil supply will increase faster than expected this year due to planned production increases by the OPEC+ group.
However, the OPEC report released no changes to its relatively high oil demand growth forecast for this year and next, noting that the global economy continues its strong growth trend.
On the supply side, documents show that tankers sanctioned by Western countries have been banned from all Indian ports, potentially restricting Russian oil supplies.
India is the biggest buyer of Russian oil shipped by sea, with much of it transported by tankers under sanctions from the European Union, the United States, and Britain.
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