Oil prices continued to fall for a third consecutive session on Friday, heading for weekly losses for the first time in three weeks, amid growing supply expectations and an unexpected increase in US crude oil inventories, which intensifies demand fears. This is reported by Reuters, writes UNN.
Details
Brent crude futures fell 10 cents, or 0.15%, to $66.89 a barrel as of 04:20 GMT, while US West Texas Intermediate crude fell 13 cents, or 0.20%, to $63.35.
Brent fell 1.78% for the week, and WTI fell 1%.
Oil prices remain under pressure due to fears of increased supply from OPEC+
Analysts noted that market expectations are growing that the group (OPEC+) may release more barrels into the market to regain market share lost to US shale oil producers in recent years.
Reuters reported on Wednesday that eight member countries of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, including Russia (together known as OPEC+), will consider further production increases in October at a meeting on Sunday, citing two informed sources.
Another increase would mean that OPEC+, which supplies about half of the world's oil, would begin to roll back the second wave of production cuts — about 1.65 million barrels per day, or 1.6% of global demand — more than a year ahead of schedule.
Addition
Meanwhile, US crude oil inventories rose by 2.4 million barrels last week as refineries entered maintenance season, according to data from the US Energy Information Administration (EIA) released on Thursday. In comparison, a Reuters poll expected a decrease of 2 million barrels.
Strong dynamics in the refining sector remained a key factor supporting prices in recent months, BMI analysts noted in their report, but refining margins are likely to decrease in the coming months due to weakening global demand growth and increased maintenance volumes at plants.
This, in turn, will reduce refining volumes, decreasing demand for crude oil, BMI analysts believe.
However, supply risks still remain relevant.
Recall
US President Donald Trump is very dissatisfied that Russian oil is being bought by Europe, particularly Hungary and Slovakia, who complained to Trump after Ukraine's attacks on Russian oil refineries.