Oil prices edged lower on Friday, reversing earlier gains, as renewed concerns about global demand overshadowed positive economic data. Crude oil futures experienced a volatile trading session before settling down.

Factors Influencing the Price Drop

• Demand Uncertainty: Lingering worries about the strength of the global economic recovery weighed on market sentiment.
• Inventory Levels: A build-up in crude oil inventories in major consuming nations added to the bearish outlook.
• Currency Fluctuations: A stronger dollar can also pressure oil prices, as it makes the commodity more expensive for holders of other currencies.

Market Outlook

Analysts suggest that oil prices are likely to remain range-bound in the near term, with economic data releases and geopolitical developments acting as key catalysts. Traders will be closely watching upcoming economic reports for indications of future demand.

Furthermore, any unexpected supply disruptions could also trigger price volatility. The market remains sensitive to news flow and prone to sharp price swings.