Oil prices saw a slight decline in light trading as the U.S. dollar strengthened and Russia's Druzhba pipeline resumed oil supplies. WTI crude fell by 0.3%, settling near $69 per barrel, while Brent crude settled below $73 per barrel. Both benchmarks narrowed their losses post-settlement, with prices remaining relatively stable.
Oil deliveries through the Druzhba pipeline to countries like Belarus and Hungary resumed after a brief interruption last week due to an unspecified issue. Meanwhile, in the Americas, U.S. President-elect Donald Trump criticized the Panama Canal's fees, which facilitates around 2% of global oil supply, but the Panamanian President dismissed these claims.
The dollar rose following the avoidance of a U.S. government shutdown, reducing the appeal of commodities. Hedge funds showed bullish signs, with net long positions in U.S. WTI crude seeing the largest weekly increase in over a year, according to CFTC data. This followed expectations of sanctions reducing Russian and Iranian oil supplies.
