Singapore — Oil prices rose slightly on Friday after four consecutive sessions of declines but were on track for their steepest weekly decline since late June due to market expectation that the Opec+ group could hike output further despite oversupply concern.
Brent crude futures gained 18c, or 0.3%, to $64.29 a barrel by 12am GMT. US West Texas Intermediate (WTI) crude climbed by 19c, or 0.3%, to $60.67 a barrel.
If prices do not further recover in this session, Brent could close at the lowest level since the week ended May 30, while WTI would finish at a level not seen since May 2.
On a weekly basis, Brent has plunged 8.3%, while WTI is 7.6% lower.
Opec+ could agree to raise oil production by up to 500,000 barrels a day (bbl/day) in November, triple the increase for October, as Saudi Arabia seeks to reclaim market share, sources told Reuters this week.
“If Opec+ do go ahead and announce a 500,000bbl/day increase this weekend, it’s likely a big enough increase to send crude oil lower again, initially to support at $58.00, before a test of this year's lows $55.00 area,” said Tony Sycamore, an analyst at IG.
Potentially higher Opec+ supply, slowing global crude refinery runs due to maintenance and a seasonal dip in demand in the months ahead were set to accelerate oil stock builds in the US and elsewhere, analysts said.
The Energy Information Administration said on Wednesday that US crude oil, petrol and distillate inventories rose last week as refining activity and demand softened.
“Concerns that a US government shutdown will curtail economic activity and the resumption of Iraq’s Kurdish oil exports is also weighing on the crude price,” Sycamore said.
The Group of Seven nations' finance ministers said on Wednesday they will take steps to increase pressure on Russia by targeting those who are continuing to boost purchases of Russian oil.
Reuters
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