Crude Oil Prices Rebound Slightly in Asia Amid Signs of Strong U.S. Demand

Crude oil prices edged higher during Asian trading hours on Friday, supported by signs of steady U.S. demand and optimism over potential stimulus in China. However, both benchmarks WTI and Brent remained under pressure from significant weekly losses, as fears of Middle East supply disruptions began to ease.

Brent crude futures rose 0.5% to $68.07 per barrel, while West Texas Intermediate (WTI) crude climbed 0.5% to $65.57 by 21:10 ET (01:10 GMT). At 08:35 AM IST, Brent crude was up 0.61% to $68.14

Factors Supporting Rising Crude Oil Prices

The modest recovery in crude oil price was underpinned by recent U.S. inventory data, which showed a substantial drawdown in crude stockpiles, suggesting robust domestic consumption. Additional support came from expectations of further economic stimulus in China, the world’s largest oil importer, potentially boosting global demand.

A weaker U.S. dollar also lent some strength to crude prices. The greenback dropped to a more than three-year low on Thursday, amid rising market speculation that the Federal Reserve could move to cut interest rates. Investors are now eyeing the upcoming Personal Consumption Expenditures (PCE) price index, due later Friday, for further clues on the Fed's next steps.

Oil Set for Steep Weekly Decline as Geopolitical Tensions Ease

Despite Friday’s uptick, both Brent and WTI are down over 12% this week—hit hard by receding fears of a major supply shock in the Middle East. The sharp selloff followed President Donald Trump’s announcement of a ceasefire agreement between Israel and Iran.

Although the truce had an uncertain start earlier in the week, it appeared to be holding steady as of Friday morning. Trump also signaled that Iran may continue crude exports to China—a bearish development for oil prices—and revealed plans for renewed nuclear negotiations with Tehran next week.

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Meanwhile, concerns over a potential blockade of the Strait of Hormuz have eased, with Iran refraining from any action that would disrupt oil flows to Asia and Europe, further stabilizing market sentiment.

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