Khaberni - Oil prices saw a slight increase on Friday after losses for four consecutive sessions and are heading to record the biggest weekly drop since late June due to expectations of a production increase by the OPEC+ alliance despite concerns about an oversupply.
By 0000 GMT, Brent crude futures were up 18 cents, or 0.3 percent, at $64.29 a barrel. U.S. West Texas Intermediate crude futures gained 19 cents, or 0.3 percent, to $60.67 a barrel.
If prices do not find more support during the session, Brent crude may settle at its lowest level since the week ending May 30, while West Texas Intermediate may reach a level not seen since May 2.
On a weekly basis, Brent crude lost 8.3 percent and West Texas Intermediate 7.6 percent.
Sources told Reuters this week that the OPEC+ alliance might agree to increase oil production by up to 500,000 barrels per day in November, three times the increase in October, as Saudi Arabia seeks to regain its market share.
Tony Sicamore, analyst at IG said, "If OPEC+ goes ahead and announces a 500,000-barrel-per-day increase at the start of next week, the increase might be large enough to push crude oil to initially drop to $58 before reaching this year's lows at $55."
Analysts warned of accelerating oil inventory accumulation in the United States and elsewhere due to the potential increase in supply from OPEC+ and slowing global crude oil refinery operations due to maintenance and a seasonal decline in demand in the coming months.
The U.S. Energy Information Administration said on Wednesday that U.S. crude oil, gasoline, and distillate stocks rose last week as refining activity and demand fell.
Sicamore also said, "Crude prices could also be affected by concerns that a U.S. government shutdown might reduce economic activity alongside the resumption of oil exports from Iraqi Kurdistan."
The finance ministers of the Group of Seven countries said on Wednesday that they would take steps to increase pressure on Russia by targeting those who continue to intensify their purchases of Russian oil.
