Oil prices experienced a modest increase on Friday following four consecutive days of decline; however, they remain poised for their most significant weekly drop since late June. This trend is largely attributed to market anticipations that the OPEC+ coalition may raise production levels further, despite ongoing concerns regarding oversupply. Brent crude futures increased by 18 cents, reflecting a rise of 0.3%, reaching a price of $64.29 per barrel as of 0000.

U.S. West Texas Intermediate crude increased by 19 cents, representing a 0.3% rise, reaching $60.67 per barrel. If prices do not experience further recovery in this session, Brent may conclude at its lowest level since the week ending May 30, while WTI would end at a level not observed since May 2. On a weekly basis, Brent has experienced a decline of 8.3%, whereas WTI has decreased by 7.6%. OPEC+ may reach a consensus to elevate oil production by as much as 500,000 barrels per day in November, a figure that would be three times the increment for October, as Saudi Arabia aims to regain market share, according to sources.

“If OPEC+ proceeds with a 500,000 bpd increase this weekend, it is probable that such a significant rise will lead to a decline in crude oil prices, initially finding support at $58.00, followed by a potential test of this year’s lows around the $55.00 mark,” stated Tony Sycamore. Analysts suggest that potentially increased OPEC+ supply, coupled with a slowdown in global crude refinery operations due to maintenance and a seasonal decline in demand in the upcoming months, is likely to expedite oil stock builds in the U.S. and other regions. The Energy Information Administration reported on Wednesday that inventories of U.S. crude oil, gasoline, and distillates increased last week, attributed to a decline in refining activity and demand.

“Concerns that a US government shutdown will curtail economic activity and the resumption of Iraq’s Kurdish oil exports is also weighing on the crude price,” Sycamore stated. The finance ministers of the Group of Seven nations announced on Wednesday their intention to intensify pressure on Russia by focusing on individuals and entities that persist in increasing their purchases of Russian oil.