Oil Rallies Fade as Oversupply Concerns Cap Geopolitical Support

Oil – US Crude futures hovered near $55.81 per barrel into Thursday’s close, leaving West Texas Intermediate down about 2.6% for the week with one session remaining, as prices stayed confined to a $54.84–$56.85 band and briefly touched fresh five-year lows. Despite periodic rebounds triggered by geopolitical developments, the broader backdrop remains dominated by oversupply worries and ample U.S. inventories, with market participants largely treating headline-driven spikes as opportunities to sell rather than revising the fundamental outlook. The same dynamics continue to weigh on global benchmarks such as Oil – Brent Crude, as expectations around OPEC+ policy and refinery disruptions have not been sufficient to offset concerns over slowing demand growth and persistent production strength.

Over the past month, prices for Oil – US Crude have fallen about 5.99%, reinforcing the bearish tone and signaling that geopolitical noise has not reversed the prevailing downtrend, while the 1-day technical indicator currently points to a Sell bias, reflecting weak short-term momentum and subdued buying interest. Similarly, Oil – Brent Crude is down roughly 6.21% over the last month, with its 1-day technical reading also at Sell, suggesting that international crude benchmarks are struggling to find sustainable support despite periodic risk-driven rallies. Investors can explore more updates, prices, and analysis across global markets at Commodities.