WTI consolidates around $69.65-$69.70 area, below monthly peak set on Thursday

• WTI oscillates in a narrow trading band and is influenced by a combination of diverging factors.
• Concerns about slowing fuel demand and increasing supply act as a headwind for the commodity.
• Geopolitical risks remain in play and hold back bears from placing bets around the black liquid.

West Texas Intermediate (WTI) US Crude Oil prices struggle to gain any meaningful traction during the Asian session on Friday and remain on the defensive below the monthly top, around the $70.30 area touched the previous day. The commodity currently trades around the $69.65 region, down 0.20% for the day, though it remains on track to register strong weekly gains amid mixed fundamental cues.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, last week decided to postpone planned supply increases by three months until April and extend the full unwinding of cuts by a year until the end of 2026. This, along with Saudi Arabia's move to cut oil prices for Asian buyers, highlights concern about a slowdown in demand, which, in turn, acts as a headwind for the black liquid. 

Meanwhile, the International Energy Agency, in its monthly report, expected non-OPEC+ nations to boost supply by about 1.5 million barrels per day (bpd) next year, exceeding demand growth forecast of 1.1 million bpd. This turns out to be another factor capping Crude Oil prices. The downside, however, remains cushioned amid concerns about supply disruptions stemming from tighter sanctions on Russia and Iran.

Furthermore, hopes that Chinese stimulus measures could lift demand in the world's top oil importer and signs of US economic resilience offer some support to the commodity. The mixed fundamental backdrop, along with the recent range-bound price action witnessed over the past two months or so, warrants some caution before placing aggressive directional bets around Crude Oil prices.