(Bloomberg) — Oil was poised for a deep weekly loss on persistent concerns about soft demand and ample supply, with OPEC+ delaying a planned increase in production amid the dour outlook.
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West Texas Intermediate was steady near $69 a barrel on Friday, down almost 6% for the week. Brent closed below $73. The producer alliance postponed its oil supply hike by two months, and won’t boost output by 180,000 barrels a day in October and November, according to an OPEC statement.
Oil has trended lower since early July on demand concerns from key consumers, specifically China, and signs of rising supply from outside of the Organization of the Petroleum Exporting Countries. Timespreads are also indicating weakness, with their bullish backwardation structure narrowing sharply.
In the US, official data showed US commercial crude inventories dropped by almost 7 million barrels last week to the lowest in about a year.
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