Oil prices edged higher on Friday after three consecutive days of losses, supported by supply disruptions but weighed down by a larger-than-expected U.S. inventory build and economic uncertainty linked to the ongoing government shutdown.

Despite the uptick, both Brent and West Texas Intermediate (WTI) crude remain on track for a second straight weekly decline of approximately 2%.

Brent crude futures rose 65 cents, or 1.03%, to $64.03 per barrel by 0745 GMT, while WTI gained 65 cents, or 1.09%, to $60.08. The gains followed a reported 5.2 million-barrel increase in U.S. crude stocks, surpassing forecasts and raising concerns about oversupply. The Energy Information Administration attributed the build to higher imports and reduced refining activity.

Tony Sycamore of IG Markets noted that the inventory data, combined with a stronger dollar and uncertainty from the U.S. shutdown, is contributing to broader risk aversion in energy markets.

OPEC+ announced a modest production increase for December but opted to hold off on further hikes through the first quarter of 2026 to avoid exacerbating supply issues. In response, Saudi Arabia lowered crude prices for Asian buyers. Meanwhile, sanctions on Russia and Iran continue to restrict exports to key markets like China and India, partially offsetting supply growth.

China’s crude imports in October rose 2.3% from the previous month and 8.2% year-on-year, reaching 48.36 million tons, driven by increased refinery utilization.

Separately, Swiss commodities firm Gunvor withdrew its bid for Lukoil assets after the U.S. Treasury labeled the Russian company a “puppet,” reflecting sustained geopolitical pressure on Russian energy interests.

Vandana Hari of Vanda Insights cautioned that while prices may find short-term support, oversupply concerns are likely to dominate market sentiment in the coming weeks.