Oil prices traded in a a tight range on Friday as investors balanced expectations of abundant supply against the potential for increased demand spurred by Chinese stimulus measures.
By 2:40 pm AEDT (3:40 am GMT) Brent crude futures and U.S. West Texas Intermediate (WTI) futures were flat at US$73.42 and $70.06 per barrel, respectively.
The International Energy Agency (IEA) projected a supply boost of 1.5 million barrels per day (bpd) from non-OPEC+ nations in 2025, led by the United States, Canada, Guyana, Brazil, and Argentina.
This growth is expected to outpace the IEA’s upwardly revised demand forecast of 1.1 million bpd, driven largely by Asia, particularly China, following its recent economic stimulus measures.
Despite Friday's rangebound trade, Brent and WTI are poised for weekly gains exceeding 3%, supported by concerns over supply disruptions from tighter sanctions on Russia and Iran and optimism about Chinese demand recovery.
Investors are closely monitoring the impact of sanctions on Russia and Iran, which could affect supply flows to major buyers such as China and India.
Additionally, market attention is focused on the Federal Reserve, with expectations of an imminent interest rate cut following data indicating a rise in weekly unemployment claims.