Oil Prices On Track For Weekly Loss As Oversupply Concerns Mount

Oil prices slipped again on Friday and were headed for a weekly loss as investors remained concerned about additional supply amid demand worries.

Benchmark Brent crude prices fell 0.5% to $66.68 per barrel, while U.S. West Texas Intermediate prices fell 0.5% to $63.15 per barrel at 4.18 a.m. ET. Retail sentiment on Stocktwits about the United States Oil Fund (USO) was in the 'bearish' territory at the time of writing.

Reuters reported on Wednesday, citing people familiar with the matter, that OPEC+ will discuss a further rise in October production in a meeting scheduled for Sept. 7. However, the report also stated the producer group could keep its production flat as well.

OPEC+, led by the world's top oil exporter, Saudi Arabia, has already brought back 2.2 million barrels per day of curtailed production capacity since April, alongside another 300,000 bpd of output rise in the UAE.

The production growth is expected to outstrip the rise in demand. According to the International Energy Agency's August estimates, global crude demand will only rise by 700,000 bpd, compared with a 1.9 million bpd jump in supplies.

“So far, OPEC has managed to raise output without undermining prices while also squeezing high-cost producers, most notably in the U.S., where production is nearing a peak. That removes the single largest source of non-OPEC supply growth of the past decade,” noted Ole Hansen, head commodity strategist at Saxo Bank.

Separately, the U.S. Energy Information Administration reported that U.S. crude stockpiles rose by 2.4 million barrels per day, which was higher than the estimated increase, according to a Reuters report.

However, geopolitical tensions have continued to support oil prices. Earlier this week, Trump warned that he could impose further sanctions on India, the world's third-largest oil consumer, for its purchases of Russian crude and asked European leaders to stop buying oil from Russia.

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