DTN Oil Update
Oil Edges Higher, Still Falling 2nd Week in Row
SECAUCUS, N.J. (DTN) -- Crude futures rose modestly Friday but still ended down for a second straight week following 3-year lows in U.S. consumer sentiment that weighed on a market already struggling with weak demand and oversupply.
The University of Michigan's Survey of Consumers reported its Index of Consumer Sentiment had fallen to lows not seen since July 2022. The slide coincided with a U.S. federal government shutdown that has stretched beyond a month, raising concerns about the economy.
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Weak U.S. consumer sentiment weighs particularly on pricing of fuel such as gasoline and diesel, given the reduced spending appetite that Americans typically have at this time, oil traders said.
Earlier in the day, oil prices rose on Chinese customs data showing October crude purchase up 2.3% from September and 8% year-on-year. But that support proved to be fleeting too as some of those volumes were earmarked for stockpiling -- a factor that normally weighs on the market.
Negative sentiment had also built into the market from Saudi Aramco's decrease of its official selling prices for crude destined to Asia -- a pivot that indicated weaker demand.
Earlier in the week, eight OPEC+ members resolved to suspend output increases in the first quarter of 2026 but still approved a 137,000-barrels per day (bpd) increment for December.
U.S. commercial crude oil reserves, meanwhile, swelled by 5.2 million barrels (bbl) last week, as per Energy Information Administration data issued Wednesday.
The NYMEX WTI contract for December delivery settled up $0.32 at $59.73 bbl, and ICE Brent for January delivery rose $0.33 to $63.71 bbl. For the week though, WTI and Brent fell about 2% each, after the prior week's slide of about 1%.
December RBOB gasoline futures edged down $0.0238 to $1.9417 gallon, and front-month ULSD futures slipped $0.0123 to $2.4838 gallon.
The U.S. Dollar Index was down 0.164 points to 99.42 against a basket of foreign currencies.