Oil was little changed as traders continued to weigh diverging signals over supply and demand, while declines in broader global markets added to price pressures.
West Texas Intermediate traded near $68 a barrel. The US penalised a small Chinese refinery and its chief executive officer for allegedly buying Iranian oil, as well as a terminal operator. The market structure for Middle Eastern barrels strengthened after the news, with traders bracing for disruption to global flows. RBC Capital Markets LLC analysts said the “risk premium here is taken more seriously.”
Still, crude was weighed down by macro concerns over slower economic growth and its impact on oil demand.
The specter of more OPEC+ supply starting next month also limited this week's gains.
Several of the cartel's members have pledged additional cutbacks to compensate for exceeding quotas. The reductions by countries including Kazakhstan, Iraq and Russia should — in theory — offset the plans to revive halted output through to the end of next year, according to a statement on OPEC's website.
Prices
WTI for May delivery added 0.01% to $68.06 a barrel at 10:32 a.m. in New York.
Brent for May settlement fell 0.2% to $71.88 a barrel.
The contract is up about 1.8% this week.
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