Brent crude oil closed the week under pressure, retreating toward the lower end of its recent trading range as markets reassessed the balance between supply discipline and demand uncertainty. The benchmark settled Friday at approximately 61.12 per barrel, reflecting a volatile week in which early gains faded amid renewed macroeconomic concerns. Broader risk-off sentiment across global markets added to downside momentum in energy prices.

Weekly Price Action Reflects Demand-Side Unease

Throughout the week, Brent crude experienced sharp intraday swings, briefly attempting to reclaim levels above 62.50 before sellers reasserted control. The five-day chart shows a clear downward bias, with prices declining by more than 4% from weekly highs. This move highlighted growing skepticism over near-term consumption trends, particularly as economic data from major economies pointed to uneven industrial activity.
Traders appeared reluctant to build long positions ahead of clearer signals on global growth, resulting in thin liquidity and exaggerated price moves. The inability to hold rebounds suggested that confidence in a near-term demand rebound remains fragile.

Supply Dynamics and OPEC+ Signals in Focus

On the supply side, Brent continued to be influenced by expectations surrounding OPEC+ production strategy. While the group has reiterated its willingness to manage output proactively, markets remain cautious about compliance levels and the impact of rising production from non-OPEC producers, particularly the United States.
Inventory data and export flows indicated that supply remains ample, limiting upside potential despite ongoing geopolitical risks in key producing regions. As a result, the traditional risk premium embedded in oil prices has remained muted, with fundamentals taking precedence over headlines.

Macro Pressures and Financial Market Spillovers

Macroeconomic developments also weighed heavily on crude prices. Strength in the U.S. dollar earlier in the week made dollar-denominated commodities less attractive, while declining equity markets reinforced defensive positioning across asset classes. At the same time, uncertainty around the pace of future interest rate cuts by major central banks contributed to a cautious outlook for energy demand.
For Israeli and global investors, Brent’s weakness underscored the close linkage between energy markets and broader capital market sentiment, particularly during periods of heightened volatility.

Looking ahead, attention will turn to upcoming OPEC+ commentary, global PMI data, and inventory reports for clues on whether Brent can stabilize above the 60 level. A sustained hold above this psychological threshold may encourage consolidation, while a decisive break lower could reopen downside risks toward earlier quarterly lows. As year-end approaches, oil markets are likely to remain sensitive to macro signals, policy guidance, and any shifts in geopolitical risk that could quickly alter the supply-demand balance.