Oil is heading for its first weekly loss in three weeks as supply expectations rise and US crude inventories surge
Oil prices extended their decline on Friday into a third session, heading for their first weekly decline in three weeks as supply expectations rise and a surge in US crude inventories fueled demand concerns.
Brent crude futures fell 10 cents, or 0.15%, to $66.89 a barrel by 04:20 GMT, while WTI crude fell 13 cents, or 0.20%, to $63.35.
Both Brent and WTI are down for the third consecutive session. Brent is down 1.78% so far this week, while WTI is down 1%.
Crude prices are under pressure due to concerns about rising OPEC+ supply. Market expectations have grown that OPEC+ will release more oil to regain market share lost to US shale producers in recent years.
The eight members of the Organization of the Petroleum Exporting Countries and allies, such as Russia, are expected to consider further production increases in October at a meeting on Sunday.
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.
Meanwhile, U.S. crude inventories rose by 2.4 million barrels last week as refineries entered maintenance season, according to data from the Energy Information Administration (EIA) on Thursday. This was contrary to poll expectations of a 2 million barrel cut.
However, refinery margins are likely to narrow in the coming months as refineries increase maintenance work while global demand growth slows.
Supply risks continue to weigh on the market.
The White House said Trump told European leaders on Thursday that Europe should halt its purchases of Russian oil. Any disruptions in Russian crude oil exports or other supply disruptions could raise global oil prices.
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