Crude oil ended the week on a bearish trajectory as rapid Russian export recovery, rising Chinese stockpiles, and cautious demand signals weighed against geopolitical risks and product-market tightness.
Crude oil spent last week trading with a bearish tilt as the market digested a rapid sequence of supply and geopolitical developments. The tone heading into Friday was defined by weakness, with WTI settling at $58.66 on Thursday, down $1.38 or 2.30%, after traders reassessed the impact of a potential Russia-Ukraine diplomatic framework and the likelihood of looser sanctions.
Earlier support driven by Russian export disruptions faded quickly once flows resumed, leaving the market more responsive to surplus signals than temporary outages. While refined-product tightness and strong U.S. crude exports prevented a deeper slide, the broader backdrop leaned clearly toward oversupply, setting the stage for cautious trading as the week closed.
Russian Export Disruptions and Diesel Tightness Drive Key Price Action
The week opened with heightened attention on Russia’s Novorossiysk export terminal following Ukrainian drone and missile strikes that halted loadings for roughly two days. Because the facility handles meaningful export volumes, traders initially priced in a sustained outage. However, when officials confirmed that the hub would resume operations more quickly than expected, the earlier rally lost momentum and crude retreated.