Singapore — Oil prices extended their decline into a third session on Friday, heading for a weekly loss for the first time in three weeks as supply expectations grow and a surprise build in US crude stock adds to demand concerns.
Brent crude futures fell 10c, or 0.15%, to $66.89 a barrel by 4.20am GMT, while US West Texas Intermediate (WTI) crude fell 13c, or 0.20%, to $63.35.
Brent was down 1.78% and WTI down 1% so far this week.
Crude oil remained under pressure amid concerns of rising Opec+ supply, ANZ research analysts wrote in a note on Friday.
Market expectations were growing that the group would push more barrels into the market to regain market share lost to US shale producers in recent years, the analysts said.
Reuters reported on Wednesday that eight members of oil cartel Opec and allies like Russia — known together as Opec+ — would consider raising production further in October at a meeting on Sunday, citing two sources familiar with the discussions.
Another boost would mean that Opec+, which pumps about half of the world’s oil, would be starting to unwind a second layer of output cuts of about 1.65-million barrels a day, or 1.6% of world demand, more than a year ahead of schedule.
Meanwhile, US crude oil inventories rose 2.4-million barrels last week as refineries headed into maintenance season, data from the Energy Information Administration showed on Thursday, compared with expectations in a Reuters poll for a 2-million barrel draw.
Strength in the downstream sector had been a key support for prices over recent months, BMI analysts said in a report, but refining margins were likely to be squeezed in coming months as global demand growth wanes and refiners ramp up maintenance.
This would lower throughput, reducing the call on crude, the BMI analysts said.
Supply risks, though, continue to cloud the market.
US President Donald Trump told European leaders on Thursday that Europe must stop buying Russian oil, a White House official said.
Any cuts to Russia’s crude exports or other disruption to supplies could push global oil prices higher.
Reuters
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