LONDON (Reuters) – Oil prices rose on Friday but remained on track for their biggest weekly decline since at least May after expectations of increased supply put pressure on the market.
Brent crude rose 10 cents, or 0.1%, to $ 73.57 a barrel at 11:52 a.m. GMT, heading for a decline of 2.6% this week, marking its biggest weekly decline since May.
August U.S. crude rose 21 cents, or 0.3%, to $ 71.86 a barrel, on course for a 3.7% drop, its biggest weekly decline since March.
Saudi Arabia and the United Arab Emirates reached a compromise this week, paving the way for OPEC + producers to finalize a deal to increase production. Read more
OPEC + – which brings together the Organization of the Petroleum Exporting Countries with Russia and other producers – had failed to agree before after the UAE sought a higher baseline for measure their production cuts. Read more
“All signs are that OPEC + is heading towards a potential compromise deal that will allow the UAE to secure a basic adjustment,” RBC Capital analysts said in a note.
“Other producers will no doubt seek similar treatment and potentially extend deliberations before the August ministerial meeting.
OPEC said Thursday it expects global oil demand to rise next year to reach pre-pandemic levels, around 100 million barrels per day (bpd), driven by growth in demand in the United States, China and India.