Oil prices bounced on Friday after three sessions of declines, yet remained on course for a second consecutive weekly drop amid persistent worries over oversupply and softer U.S. demand.

By 09:04 GMT, Brent crude rose $0.60 (≈1%) to $63.98/bbl, while West Texas Intermediate (WTI) gained $0.61 (≈1%) to $60.04/bbl. Both benchmarks are still set to finish the week down >1.5% as major producers lift output into a well-supplied market.

U.S. inventories and shutdown uncertainty

U.S. crude stocks rose more than expected last week, driven by higher imports and lower refinery runs, the EIA said Wednesday. Gasoline and distillate inventories fell, but the drawdowns were not sufficient to offset crude builds. Macro sentiment was further pressured by the longest U.S. government shutdown on record, which has begun to disrupt activity (flight reductions due to air-traffic controller shortages) and muddied the economic picture amid weaker private labor indicators for October.

OPEC+ tweaks and Saudi pricing signal

OPEC+ agreed Sunday to a modest output increase in December while pausing further hikes in Q1, reflecting caution about tipping the market into surplus. In a nod to ample supply, Saudi Arabia announced a sharp cut to December official selling prices for Asian buyers—an aggressive commercial move that underscores the battle for market share.

Sanctions, trade flows and China demand

Sanctions on Russia and Iran continue to disrupt flows to China and India, offering some counterbalance to oversupply risks. China’s October crude imports rose 2.3% m/m and 8.2% y/y to 48.36mn tons, supported by high refinery utilization. In corporate developments, Gunvor said it withdrew its bid for Lukoil’s foreign assets after U.S. authorities labeled the Russian firm a “puppet,” signaling Washington’s opposition.

Bottom line

The near-term setup remains range-bound to soft: rising OPEC+ supply, heavier U.S. crude stocks, and macro uncertainty are capping rallies, even as Chinese intake and refined-product draws offer intermittent support. Without a clear demand inflection or deeper producer restraint, Brent’s attempts to reclaim the mid-$60s are likely to meet selling interest.