Oil Edges Higher Still Falling 2nd Week in Row


   
Barani Krishnan
DTN Analyst

   SECAUCUS, NJ (DTN) -- Crude futures rose modestly Friday (11/7) but still 
ended down for a second straight week following three-year lows in U.S. 
consumer sentiment that weighed on a market already struggling with weak demand 
and oversupply.

   The University of Michigan's Surveys of Consumers reported that 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.

   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-bpd 
increment for December.

   U.S. commercial crude oil reserves, meanwhile, swelled by 5.2 million 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.

    




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