FX.co ★ Oil Set for Biggest Weekly Loss since June

WTI crude oil futures rose to $61 per barrel on Friday, experiencing a modest recovery after four consecutive sessions of losses, yet were set for a 7% decline over the week—a downturn not seen since late June. Market sentiment is affected by expectations that OPEC+ may expedite supply increases, with eight member countries potentially boosting November production by 274,000 to 411,000 barrels per day. This increase would be two to three times the October levels, aligning with Saudi Arabia's ambition to regain its market share. Compounding the bearish outlook are slower refinery operations due to maintenance, seasonal declines in demand, and concerns about a potential U.S. government shutdown. However, ongoing oil exports from Iraq and buying activity from China have alleviated some of the downward pressure. The International Energy Agency (IEA) anticipates a record surplus in the coming year. Analysts highlight that the market is finally confronting the much-anticipated excess, following OPEC+'s reinstatement of 2.2 million barrels per day, which had been reduced earlier in 2023.