Invesco Oil & Gas Services ETF

PXJ

Market cap $28.3M

Geopolitical tensions and supply risks push oil higher while Natural Gas holds a rising channel. Key resistance tests signal major moves ahead.

Oil ticked down in Asia after settling higher overnight, but stays on track for a weekly gain.

WTI oil prices were heading for weekly gains of close to 2% in early trading on Friday, supported by an expected Federal Reserve interest rate cut, escalating U.S.-Venezuela tensions and stalled peace talks in Moscow.

Crude oil rallied to a 10-day high of $60.10 Thursday, reclaiming the 20-day average for a fourth day and triggering an initial breakout above the falling channel while the weekly chart flips to a bullish reversal for the first time in five weeks.

President Donald Trump has blamed drug trafficking for the deadly U.S. strikes on boats in the Caribbean Sea and his threats to force the resignation of Venezuela's President Nicolás Maduro, but crude oil is almost certainly playing a part too.

Oil prices gained ground as geopolitical risk premium increased.

OPEC's oil output edged lower in November, despite an OPEC+ agreement to raise production for the month, due to outages in some members, a Reuters survey found on Thursday, bringing supply from the group further below its target.

Oil trades slightly positive but remains stuck in a broader downtrend, repeatedly rejected by key technical levels. Both WTI and Brent continue to face pressure from oversupply, keeping rallies limited and favoring a bearish, short-the-rally approach.

Look for more AI adoption to help broaden the stock market next year, but overly optimistic sentiment may need a reset early on, says strategist Warren Pies.

WTI holds $59.23 support as Ukraine strikes raise supply risk and refine output drops, keeping crude steady with a mild bullish bias.