Oil Prices Head for First Weekly Loss in Three Weeks
Oil prices fell for a third straight session on Friday, putting crude on track for its first weekly decline in three weeks. The drop came as expectations of higher supply weighed on markets, while a surprise build in U.S. crude inventories raised demand concerns.
By 06:42 GMT, Brent crude futures slipped 19 cents, or 0.28%, to $66.80 a barrel, while U.S. West Texas Intermediate (WTI) fell 23 cents, or 0.36%, to $63.25. For the week, Brent was down 1.92%, and WTI had dropped 1.19%.
OPEC+ Supply Concerns Pressure Market
Analysts at ANZ Research said crude remains under pressure as investors anticipate higher supply from OPEC+. The group, which includes OPEC members and allies such as Russia, may boost output to reclaim market share lost to U.S. shale producers.
According to Reuters, OPEC+ is set to discuss further production increases in October at a meeting this Sunday. Such a move would mean unwinding part of its additional 1.65 million barrels per day of output cuts—more than a year earlier than planned.
U.S. Stockpile Build Adds to Demand Concerns
Data from the Energy Information Administration (EIA) showed that U.S. crude inventories rose 2.4 million barrels last week, compared with expectations for a 2 million-barrel draw. Refineries cutting runs for seasonal maintenance were a key driver behind the build.
BMI analysts noted that refining margins had supported prices in recent months. However, with demand growth slowing and refinery maintenance ramping up, throughput will likely decline, reducing crude demand.
Geopolitical Risks Remain
Despite near-term weakness, supply risks continue to loom. U.S. President Donald Trump urged European leaders to halt purchases of Russian oil. Any disruption to Russian exports or other supply shocks could trigger renewed upward pressure on global crude prices.
