Oil prices experienced a decline on Friday, marking a potential third consecutive monthly decrease. This trend was influenced by a stronger dollar, which limited gains in commodities, while an increase in supply from major global producers countered the effects of Western sanctions on Russian exports. Brent crude futures decreased by 33 cents, representing a 0.51% decline, settling at $64.67 a barrel as of 0027. Meanwhile, U.S. West Texas Intermediate crude was priced at $60.22 a barrel, down 35 cents, or 0.58%. “A stronger USD weighed on investor appetite across the commodities complex,” noted analysts. The U.S. dollar experienced an uptick following remarks from Federal Reserve Chair Jerome Powell on Wednesday, indicating that a rate cut in December is not assured.

In October, both Brent and WTI are projected to decline by approximately 3%, driven by an anticipated increase in supply that is likely to surpass demand growth for the year. This trend is influenced by the Organization of the Petroleum Exporting Countries and significant non-OPEC producers increasing their output to capture a larger share of the market. Increased supply will mitigate the effects of Western sanctions that are hindering Russian oil exports to its primary markets, China and India. OPEC+ is considering a slight increase in production for December, according to sources familiar with the discussions ahead of the group’s meeting on Sunday.

The eight OPEC+ members have raised their output targets by more than 2.7 million barrels per day, which accounts for approximately 2.5% of global supply, through a series of monthly increments. In the meantime, crude exports from leading exporter Saudi Arabia reached a six-month peak of 6.407 million barrels per day in August, according to data released on Wednesday, with expectations for further increases. The latest report from the U.S. Energy Information Administration indicated a record production level of 13.6 million bpd last week.

On Thursday, U.S. President Donald Trump announced that China has consented to initiate the process of acquiring U.S. energy resources. He indicated that a substantial transaction could occur, potentially involving the procurement of oil and gas from Alaska. However, there is skepticism among analysts regarding the potential of the U.S.-China trade deal to enhance Chinese demand for U.S. energy. “Alaska produces only 3% of total U.S. crude oil output (not significant), and we believe that Chinese purchases of Alaskan LNG are likely to be driven by market dynamics,” stated analyst Michael McLean.