Oil Prices Set for Weekly Loss as Supply Expectations Weigh on Market
Oil prices fell for a third consecutive session on Friday, positioning benchmarks for their first weekly decline in three weeks as traders weighed rising supply expectations and surprise builds in U.S. inventories.
Brent crude futures slipped 35 cents, or 0.5%, to $66.64 a barrel by 08:10 GMT, while U.S. West Texas Intermediate dropped 33 cents, or 0.5%, to $63.15. For the week, Brent was down 2.2% and WTI 1.3%.
The pressure follows a Reuters report that eight OPEC+ members are considering raising output further at their meeting on Sunday, a move aimed at regaining market share. Such a decision would unwind a second layer of production cuts — amounting to 1.65 million barrels per day, or 1.6% of global demand — more than a year ahead of schedule.
Meanwhile, U.S. data showed crude inventories rose by 2.4 million barrels last week, defying analyst forecasts of a drawdown, further dampening sentiment.
John Evans of oil broker PVM noted that the market is increasingly pricing in a future where feedstock supply is less constrained. Analysts at BMI added that refining margins, which have supported prices in recent months, are likely to narrow as demand growth softens and seasonal maintenance begins.
Still, geopolitical risks remain a source of support. U.S. President Donald Trump urged European allies this week to halt purchases of Russian oil, warning of potential consequences for continued reliance. Any disruptions to Russian flows could tighten balances and reverse the current downward momentum.
