Oil prices edged up during Friday's Asian trade after three consecutive sessions of declines, though they remained poised for a second straight weekly loss amid persistent concerns over excess supply and slowing United States demand.
By 3:30 pm AEDT (4:30 am GMT), Brent crude futures had gained 21 cents, or 0.3%, to $63.59 a barrel, while U.S. West Texas Intermediate (WTI) crude also rose 21 cents, or 0.4%, to $59.64.
Both benchmarks were on track to fall around 2% for the week, marking a second consecutive weekly decline as major producers ramp up output.
The downward pressure on prices followed a surprise 5.2-million-barrel build in U.S. crude inventories last week, according to data from the Energy Information Administration (EIA).
The increase - driven by higher imports and reduced refining activity - rekindled oversupply concerns, even as gasoline and distillate inventories fell.
Adding to market unease, fears are mounting over the potential economic fallout from the longest U.S. government shutdown in history.
The Trump administration has also ordered flight reductions at major airports due to a shortage of air traffic controllers, while private reports indicate a weakening labour market in October.
OPEC and its allies (OPEC+) announced on Sunday that they would modestly increase production in December but hold off on additional output hikes through the first quarter of next year to prevent a potential glut.
Elsewhere, geopolitical tensions flared in Europe after Swiss commodity trader Gunvor withdrew its bid to acquire foreign assets of Russia’s Lukoil.
The move followed a warning from the U.S. Treasury, which labelled Lukoil a “puppet” of the Russian state and signalled Washington’s opposition to the transaction.
