Oil News: Crude Oil Edges Up as Trump-Hungary Meeting Sparks Sanction Speculation

WTI Rebounds Late on Geopolitical Hopes

Light crude oil futures finished slightly higher on Friday, recovering off Thursday’s low at $58.83. The late-session bounce was tied to optimism surrounding a White House meeting between U.S. President Donald Trump and Hungarian Prime Minister Viktor Orban. Hungary’s continued use of Russian crude is drawing scrutiny, and traders are watching closely for any easing of sanctions on Lukoil or Rosneft.

WTI settled at $59.75, up 32 cents or 0.54%, while Brent closed at $63.65, up 25 cents. Still, both benchmarks posted weekly losses of roughly 2% as concerns over oversupply lingered. The U.S. oil market remains under pressure from a larger-than-expected 5.2 million barrel inventory build, driven by stronger imports and weaker refinery runs.

Technical Picture Shows Market at a Crossroads

From a chart perspective, WTI tested a short-term retracement zone between $59.27 (50% level) and $58.49 (61.8% level) before closing above it. This zone is acting as a pivot for near-term direction.

A sustained move above $59.27 would indicate buying interest, potentially triggering a push toward the 50-day moving average at $61.15 and then the 200-day at $61.71.

That said, the bulls still have work to do. Failure to hold above $59.27 opens the door for another test of $58.49. A breakdown below this retracement support could accelerate selling pressure, putting the $55.96–$55.27 zone in play.

Surplus Concerns Offset Chinese Demand Support

Market sentiment remains fragile. The recent U.S. government shutdown has led to thousands of canceled flights, dampening demand for diesel and jet fuel. With the Federal Aviation Administration limiting airline operations due to staffing shortages, the short-term demand outlook remains cloudy.

On the supply side, OPEC+ agreed to a minor output hike for December but hit pause on any further increases in Q1, signaling unease about flooding the market. Saudi Arabia, facing a well-supplied global market, slashed its December crude prices to Asian buyers.

Still, firm demand out of China is offering some support. October crude imports rose 2.3% from the prior month and 8.2% year-over-year, driven by high refinery utilization rates. Traders say China’s aggressive buying is keeping barrels out of OECD markets, where inventories remain tight.

Outlook: Bulls Need a Break Above $61.71 to Shift Momentum

Bottom line — while Friday’s close above the 50% retracement level hints at a bullish undercurrent, the market isn’t out of the woods. The near-term technical ceiling at the 200-day moving average around $61.71 remains the real battleground. Until that level gives way, rallies could face selling pressure, especially if inventory builds and weak demand trends persist.

More Information in our Economic Calendar.