WTI would conclude at a level not seen since May 2 if prices do not continue to rise during this session, while Brent would settle at its lowest level since the week ending May 30.
Oil Prices Show Weakness
The market’s assumption that the OPEC+ group may increase production further despite worries about oversupply caused oil prices to rise marginally on Friday after four consecutive sessions of falls, but they were still on course for their worst weekly drop since late June.
By 0000 GMT, Brent oil prices were up 18 cents, or 0.3%, to $64.29 a barrel. At $60.67 a barrel, US West Texas Intermediate oil increased 19 cents, or 0.3%.
WTI would conclude at a level not seen since May 2 if prices do not continue to rise during this session, while Brent would settle at its lowest level since the week ending May 30. WTI is down 7.6% on a weekly basis, while Brent has down 8.3%.
OPEC+ Output Hike Looms
As Saudi Arabia looks to regain market share, sources told Reuters this week that OPEC+ may agree to boost oil output by up to 500,000 barrels per day in November, which would be three times the increase for October.
Tony Sycamore, an analyst at IG, said that if OPEC+ does announce a 500,000 bpd increase this weekend, it would probably be a significant enough increase to push crude oil down once again, first to support around $58.00 before testing the $55.00 region, which was the bottom for this year.
Analysts predict that a seasonal decline in demand, slower global crude refinery runs due to maintenance, and perhaps increased OPEC+ supplies will all contribute to an acceleration of oil stock buildup in the US and other countries in the coming months.
Rising Stockpiles Weigh Down
US crude oil, gasoline, and distillate stockpiles increased last week as refining activity and demand cooled, the Energy Information Administration said on Wednesday.
“The return of Iraq’s Kurdish oil shipments and worries that a US government shutdown may reduce economic activity are also dragging on the crude price,” Sycamore said.
The finance ministers of the Group of Seven countries said on Wednesday that they would take action to put further pressure on Russia by going after those who are still increasing their imports of Russian oil.