Crude futures experienced low volatility in early trading on Friday, with oil prices on track for a weekly gain.
US jobs market data, which were mostly in line with expectations, contributed in reducing recession fears and alleviated demand concerns.
An uptick in Chinese inflation data also supported sentiment. At the same time, the geopolitical situation remains tense, with escalating confrontation risks supporting oil prices.
However, looking ahead, global oil supply from OPEC+ could increase in October as the organisation could start phasing out part of its production cuts, which could weigh on prices if demand does not improve. Demand could remain sluggish as Chinese economic growth slows down. In addition, the discrepancy between OPEC’s and the IEA’s demand growth estimates continues to fuel market uncertainty.
