Oil prices fell in early Asian trade on Friday amid heightened uncertainty over whether the OPEC+ will agree to further increase output at a meeting scheduled to take place over the weekend.
Crude prices were headed for weekly declines as an unexpected build in U.S. inventories sparked some concerns over cooling fuel demand, which also weighed on oil prices.
Brent oil futures for November fell 0.2% to $66.83 a barrel, while West Texas Intermediate crude futures fell 0.2% to $62.88 a barrel by 20:38 ET (00:38 GMT).
OPEC+ output uncertainty weighs on oil
Oil was headed for weekly declines between 1% and 1.5%, as traders fretted over increasing supplies and sluggish demand.
The Organization of Petroleum Exporting Countries and allies, also known as OPEC+, is set to meet this weekend.
Recent reports suggested that members were considering approving even more output hikes, after the cartel increased production by about 2.2 million barrels per day so far in 2025.
Any more production increases will mark an additional scaling back of the OPEC’s deep output cuts over the past two years, with the cartel now seeking to shore up production and reclaim a greater market share.
Russian oil production was a major point of focus, amid efforts by the U.S. to dissuade major buyers India and Europe from buying more oil from Moscow.
But Russia recently agreed to supply at least 2.5 million metric tons of oil to China annually, via Kazakhstan, which is likely to keep Moscow’s oil production high.
US oil inventories unexpectedly rise
Oil markets were also spooked by an unexpected build in U.S. oil inventories.
Data from the Energy Information Administration showed on Thursday that U.S. oil inventories grew by 2.415 million barrels in the week to August 29, blowing past expectations for a draw of 2 million barrels.
Distillate inventories also unexpectedly grew, while gasoline inventories clocked a much bigger-than-expected draw.
Still, the reading ramped up concerns over cooling U.S. fuel demand, especially after the end of the travel-heavy summer season.
Signs of a cooling labor market also sparked concerns over U.S. fuel demand in the coming months. Focus is now squarely on nonfarm payrolls data for August, due later in the day, for more cues on the economy and interest rates.
Source :
https://www.investing.com/news/commodities-news/oil-prices-subdued-ahead-of-opec-output-decision-us-inventory-build-weighs-4225887
