Oil steadied as geopolitical risks clash with supply outlook

Oil prices held steady on Thursday after touching a seven-week high in the previous session, as traders weighed escalating geopolitical risks against a softer US economic outlook.

Brent settled 11 cents, or 0.16%, higher at $69.42 a barrel. 

WTI lost 1 cent, or 0.02%, to $64.98.

Prices initially rose after Russia announced a suspension of fuel exports through year-end, following a series of Ukrainian drone strikes on its refineries. The rally, however, was capped by fresh US economic data that dampened expectations of deeper interest rate cuts.

Despite heightened tensions, crude has remained locked in a narrow trading range since early August. Analysts, including the International Energy Agency, expect excess supply later this year as OPEC+ and non-OPEC producers ramp up output, leaving traders torn between geopolitical risks and a looming supply overhang.

Written: Farid Muzaffar