Oil prices rose during Asian trade on Friday after four consecutive sessions of losses, but were still on course for their sharpest weekly drop in more than three months, as markets braced for the possibility of higher OPEC+ output against a backdrop of oversupply concerns.
By 3:30 pm AEST (5:30 am GMT), Brent crude futures were up 47 cents, or 0.7%, at US$64.58 per barrel, while U.S. West Texas Intermediate gained 45 cents, or 0.7%, to US$60.93.
Despite the uptick, Brent was still down 8% for the week, while WTI was 7.4% lower, marking their steepest weekly declines since late June.
Sources told Reuters that OPEC+ may agree to raise production by as much as 500,000 barrels per day in November, three times the increase scheduled for October, as Saudi Arabia moves to reclaim market share.
Analysts said the potential boost in supply, combined with weaker global refinery runs due to seasonal maintenance and slowing demand, could lead to faster stock builds in the U.S. and elsewhere.
The U.S. Energy Information Administration reported on Wednesday that inventories of crude, gasoline and distillates all rose last week, reflecting subdued refining activity and weaker consumption.
Meanwhile, finance ministers from the Group of Seven nations pledged to increase pressure on Russia by targeting countries that continue to boost purchases of its oil, as part of broader efforts to curtail Moscow’s energy revenues.
