Oil heads for weekly loss as higher supply expected
Oil extended its decline into a third session on Friday, heading for a weekly loss for the first time in three weeks as expectations grow of higher supply and a surprise increase in U.S. crude inventories added to demand concerns.
Reuters reported on Wednesday that eight members of OPEC+ will consider raising production further at a meeting on Sunday. U.S. crude inventories rose 2.4 million barrels last week, rather than falling as analysts expected.
Brent crude futures fell 51 cents, or 0.8%, to $66.48 a barrel by 1205 GMT, while U.S. West Texas Intermediate crude dropped 52 cents, or 0.8%, to $62.96.
"There are increasing stories and signs of a future where feedstock supply is unlikely to be a problem," said John Evans at oil broker PVM.
For the week, Brent is down 2.4% and WTI down 1.7%.
Expectations are growing that the Organization of the Petroleum Exporting Countries and allies like Russia - known together as OPEC+ - will push more barrels into the market to regain market share at Sunday’s meeting.
Another boost would mean that OPEC+, which pumps about half of the world’s oil, would be starting to unwind a second layer of output cuts of about 1.65 million barrels per day, or 1.6% of world 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 will likely be squeezed in coming months as global demand growth wanes and refiners ramp up maintenance.
Source: Source: Newsmaker.id
