Crude oil prices closed lower for the week as the global energy market reacted to fresh indicators of slowing fuel consumption in the United States, alongside Washington’s latest relaxation of restrictions on Lukoil’s international operations and ongoing uncertainty surrounding Russia–Ukraine peace efforts.
Brent crude ended the week at $62.99 per barrel, slipping 0.4% from the previous Friday’s price of $63.24, while the U.S. benchmark, West Texas Intermediate (WTI), settled at $59.30 per barrel, down 0.2% from last week’s $59.43.
Fresh data released by the U.S. Energy Information Administration (EIA) showed that commercial crude inventories increased by 600,000 barrels, bringing total stockpiles to 427.5 million barrels. Analysts had projected a drawdown of around 1.9 million barrels, and the unexpected rise contributed significantly to bearish positioning among traders.
The EIA further noted that U.S. strategic reserves added 300,000 barrels to reach 411.7 million barrels, while gasoline inventories jumped by 4.5 million barrels to 214.4 million barrels. Crude production also recorded a modest uptick, rising by 1,000 barrels per day to 13.815 million bpd, reinforcing widespread expectations of ample supply even as demand indicators soften.
Market analysts said the combination of rising inventories, steady production levels, and decreasing consumption patterns strengthened the downward pressure on global crude benchmarks throughout the week.
Sentiment was further weighed by Washington’s decision to temporarily permit Lukoil to continue operating its fuel stations outside Russia until April 29, 2026, easing fears of potential supply disruptions. The waiver, issued by the Office of Foreign Assets Control (OFAC), softened parts of earlier sanctions against Rosneft, Lukoil, and affiliated entities in response to concerns that the companies had not demonstrated meaningful support for Ukraine peace initiatives.
Political signals also contributed to the retreat in oil prices. Russian President Vladimir Putin told India Today that Moscow would bring the conflict to an end once its pre-war objectives had been achieved. He referenced a December 2 meeting with envoys of U.S. President Donald Trump as “very useful,” adding that all components of Washington’s proposed peace plan had been reviewed.
His remarks helped reduce the geopolitical risk premium that had previously offered support to crude markets.
However, new instability in Yemen added fresh complexities to supply risk forecasts. Forces aligned with the UAE-backed Southern Transitional Council (STC) reportedly seized key territories in the oil-rich Hadhramaut region, including strategic towns and vital oilfield locations. Officials from Yemen’s Second Military Region confirmed that STC special units had taken control of positions formerly held by the “Tribal Alliance,” along with several oil platforms on the Hadhramaut plateau.
Elsewhere in Latin America, U.S. President Donald Trump’s decision to shut U.S. airspace to Venezuelan aircraft — following earlier naval deployments near the country — raised concerns of tighter curbs on Venezuelan crude shipments. Analysts believe a full-scale confrontation remains unlikely, though additional U.S. pressure could constrain Venezuela’s already fragile oil output.
Expanded drone attacks targeting critical energy facilities in Russia and Ukraine also provided limited support to oil prices, underscoring ongoing risks of supply chain disruptions.
Despite these bullish geopolitical factors, the week ended with bearish momentum firmly in place, driven primarily by soft U.S. demand signals and Washington’s easing of sanctions affecting Russian-linked oil operations.
