Oil Heads for Weekly Decline as Higher Supply Expected
Oil prices continued their decline into a third session on Friday, heading for a weekly loss for the first time in three weeks as rising expectations of higher supply and a surprise increase in U.S. crude inventories added to demand concerns.
Reuters reported on Wednesday that the eight members of the Organization of the Petroleum Exporting Countries (OPEC+) will consider raising production further at their meeting on Sunday. U.S. crude inventories rose by 2.4 million barrels last week, instead of falling as analysts had expected.
Brent crude futures fell 35 cents, or 0.5%, to $66.64 a barrel at 08:10 GMT, while U.S. West Texas Intermediate crude fell 33 cents, or 0.5%, to $63.15.
"There are more and more stories and signs that feedstock supply is likely to be less of an issue," said John Evans of oil broker PVM.
For the week, Brent fell 2.2% and WTI fell 1.3%.
Expectations are growing that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known collectively as OPEC+, will supply more barrels of oil to the market to regain market share at Sunday's meeting.
This additional boost means OPEC+, which produces about half the world's oil, will begin easing its second phase of production cuts of about 1.65 million barrels per day, or 1.6% of global demand, more than a year ahead of schedule.
Strength in the downstream sector has been a key support for prices, BMI analysts said in a report, but refining margins are likely to be squeezed in the coming months as global demand growth slows and refineries ramp up maintenance. (ayu)
Source: Newsmaker.id
