New york: Oil prices fell at settlement on Friday evening, for the third consecutive day, to their lowest levels since May, amid fears that the OPEC+ alliance will increase crude supplies at its upcoming meeting on Sunday, increasing concerns about a supply surplus later this year.
According to National Iraqi News Agency, West Texas Intermediate fell 2.5% to settle below $62 per barrel, marking a 3.3% decline this week. Meanwhile, Brent crude for November delivery fell 2.2% to settle at $65.50 per barrel.
Oil prices experienced significant pressure this week as US inventories saw an unexpected increase. Crude inventories rose by 2.4 million barrels, surpassing expectations, while stocks at the Cushing, Oklahoma, refinery reached their highest level since early May. Additionally, diesel stocks increased, which dampened some of the optimism that had previously supported oil prices, despite a decline in gasoline reserves.
This situation has led to growing expectations of a global supply glut that could exacer
bate inventory levels. Consequently, many investors are adopting a wait-and-see approach until the OPEC+ production plans are clarified this week.