Veriton Investment

Oil Dips as Surplus Outlook Outweighs Worry Over Russian Supply

(Bloomberg) -- Oil slipped for a third day as the outlook for a global supply surplus outweighs concerns over Russian flows.

Brent futures dipped below $67 a barrel, erasing gains from earlier in the week. Price support from the Federal Reserve’s rate cut, US President Donald Trump’s calls to stop buying Russian crude and repeated Ukrainian strikes on energy assets has been short-lived.

Most Read from Bloomberg

Manhattan Casino Odds Fade After Caesars, Silverstein Foiled

When a College Dies, Who Gets the Campus?

In Dallas, Transit Cuts Reflect Long-Simmering Suburban Tensions

The Steep Curve to Peak Urban

New York Executives Blast State Over Regulatory ‘Black Hole’

“Attacks on Russian oil infrastructure are giving some upside support to prices, but it’s still tempered by a market looking for a surplus in the months ahead,” said Edward Bell, acting group head of research and chief economist at Emirates NBD. “The oil market looks as though it’s largely ignoring the Fed for now.”

A faster-than-expected output reversal by the Organization of the Petroleum Exporting Countries and its partners has led the International Energy Agency to predict a record crude supply surplus next year. That has offset geopolitical concerns and kept prices stuck in a tight range.

Indian refiners have no plans to step away from Russian crude as domestic fuel demand picks up, even as New Delhi resumes trade negotiations with Washington.

Meanwhile, Ukraine struck two Russian oil refineries on Thursday as it steps up its campaign to hit Moscow’s biggest source of funds. Crude processing in the country has now dropped below 5 million barrels a day, the lowest since April 2022, according to an estimate from JPMorgan Chase & Co.

Investors will also be watching a call later on Friday between Trump and Chinese President Xi Jinping for a potential easing of trade tensions between the world’s two biggest economies. The two leaders are due to speak at 9 a.m. Washington time.

--With assistance from Sarah Chen.