Oil prices slide into weekly loss as oversupply continues

Oil prices continued declining into a third session on Friday, marking its first weekly loss in three weeks, pressured by rising supply and an unexpected increase in US crude inventories.

Data from Reuters revealed that Brent crude futures fell 19 cents, or 0.28 percent to USD 66.80 a barrel by 0642 GMT, while US West Texas (WTI) decreased by 23 cents, or 0.36 percent to USD 63.25 a barrel. 

So far this week, Brent is down 1.92 percent and WTI 1.19 percent. 

ANZ analysts wrote on Friday that crude oil remains under pressure amid concerns that rising OPEC+ supply aims to reclaim market share losses to US shale producers in recent years. 

Eight members of OPEC+, consisting of OPEC as well as Russia, will consider raising oil production later in October following a meeting on Sunday. 

With OPEC+ already pumping about half of the world’s oil, another output boost would reverse nearly 1.65 million barrels per day from the second layer of production cuts, equivalent to 1.6 percent of global demand more than a year ahead of schedule. 

Simultaneously, data from the US Energy Information Administration on Thursday showed crude inventories rising by 2.4 million barrels last week, a surprise against expectations for a 2 million-barrel draw.

BMI analysts expect refinery maintenance and falling refining margins to reduce crude demand in the coming months, pulling prices further down. 

However, geopolitical tensions could counteract the drop, as US President Donald Trump urges European leaders to stop buying Russian oil, a move that could tighten global supply and lift prices again.