Oil Prices Decline on Weak U.S. Demand Expectations
Oil prices slipped on Friday after US crude inventories rose unexpectedly and ahead of an OPEC+ meeting where producers are expected to raise supply targets. Brent Crude was trading at $66.61 per barrel, down 0.06% from the previous close of $66.65. US benchmark West Texas Intermediate (WTI) fell 0.5% to $62.69 from $63.03 in the prior session.
The US Energy Information Administration (EIA) said commercial crude oil inventories unexpectedly rose by 2.4 million barrels last week to 420.7 million barrels. Market forecasts had pointed to a decline of about 2 million barrels. Strategic reserves, which are not included in commercial stockpiles, climbed by 500,000 barrels to 404.7 million.
Traders remain focused on the upcoming OPEC+ meeting. Expectations that the group, made up of the Organization of the Petroleum Exporting Countries and several non-OPEC producers, will decide to raise production for October continue to put downward pressure on prices.
Analysts say the alliance is likely to boost supply in an effort to regain market share lost in recent years to US shale producers. The group had previously agreed to increase production by 547,000 barrels a day for September compared with August.
At the same time, US President Donald Trump urged European leaders to halt purchases of Russian oil.
According to a White House official, Trump made the remarks during a “coalition of the willing” meeting in Paris on the Ukraine war, convened at the invitation of French President Emmanuel Macron and European leaders.
He pointed out that Russia had earned €1.1 billion from fuel sales to the EU over the past year. Trump argued that Europe should stop buying Russian oil, which he said finances the war, and called on leaders to exert economic pressure on China for supporting Moscow’s war effort.
Analysts warn that any disruption to Russian crude exports or other supply interruptions could tighten global markets and drive prices higher. # Oil Prices Decline on Weak U.S Demand Expectations Rates Hike Anticipated as CBN Sets to Auction Treasury Bills
