Oil prices eased on Friday, extending their decline for the third consecutive month as a stronger U.S. dollar dampened investor demand and rising global supply overshadowed concerns about Western sanctions on Russian exports.
Brent crude futures dropped 33 cents, or 0.51%, to $64.67 a barrel, while U.S. West Texas Intermediate (WTI) crude slipped 35 cents, or 0.58%, to $60.22 per barrel as of 0027 GMT. Analysts at ANZ noted that “a stronger USD weighed on investor appetite across the commodities complex,” following remarks from Federal Reserve Chair Jerome Powell suggesting that a December rate cut was not guaranteed.
Both Brent and WTI are set to lose about 3% in October amid expectations that supply growth will surpass demand this year. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have been increasing output to strengthen market share. Sources familiar with the matter said OPEC+ is leaning toward a modest output boost in December.
Since early this year, OPEC+ members have collectively raised output targets by over 2.7 million barrels per day (bpd), roughly 2.5% of global supply. Saudi Arabia’s crude exports climbed to a six-month high of 6.407 million bpd in August, according to the Joint Organizations Data Initiative (JODI), with further increases expected.
In the U.S., the Energy Information Administration (EIA) reported record production of 13.6 million bpd last week. Meanwhile, President Donald Trump announced that China had agreed to begin purchasing U.S. energy, potentially including oil and gas from Alaska. However, analysts remain skeptical about its impact. Barclays’ Michael McLean noted that Alaska contributes only 3% of total U.S. crude output, and any Chinese purchases would likely be market-driven.