Brent crude oil futures extended losses for a third straight session on Friday, falling 2.2% to settle at $65.5 per barrel and marking their first weekly decline in three weeks.
The drop followed a 2.4 million-barrel rise in US crude inventories, contrary to expectations, and ahead of a Sunday OPEC+ meeting where additional production increases are under consideration.
Saudi Arabia is reportedly advocating for higher output to regain market share, potentially reversing some of the existing 1.65 million barrels-per-day cuts.
Geopolitical tensions also weigh on the market, with the US pressuring buyers of Russian oil and imposing new levies on imports from India.
Adding to bearish sentiment, new supply from Guyana and Brazil is expected to come online, while slower US economic growth raises concerns about demand.
Overall, crude prices remain under pressure from the combined impact of potential oversupply, geopolitical risks, and economic uncertainties.