Oil prices fell on Friday as expectations for an OPEC+ supply increase from October faded and hopes for a major U.S. rate cut next month faded. U.S. consumer spending data showed strong consumer spending, dampening hopes for a major Fed rate cut.
Brent crude futures for October delivery, set to expire Friday, fell $1.14, or 1.43%, to $78.80 a barrel. That’s down 0.3% for the week and 2.4% for the month.
WTI Crude futures fell $2.36, or 3.11%, to $73.55, meaning they’re down 1.7% for the week and 3.6% for August.
OPEC+ is set to resume a planned oil production increase from October as cuts in Libya and cuts pledged by some members to compensate for excess production offset the impact of sluggish demand.
Investors, meanwhile, responded to new data showing U.S. consumer spending rose solidly in July. Suggesting the economy remained on firmer footing early in the third quarter and opposing a half-point interest rate cut from the Federal Reserve next month.
Lower rates could boost economic growth and oil demand.
The Libyan National Oil Company said the latest oilfield closures have caused the country to lose about 63% of its total oil production as fighting between rival eastern and western factions continues. Production losses could reach between 900,000 and 1 million barrels per day (bpd) and could last for several weeks.
National Oil Corporation said recent oilfield closures have caused the loss of approximately 63% of the country’s total oil production, as a conflict between rival eastern and western factions continues.
There is a lot of negative inertia in the market right now, which is pushing prices down.
Iraqi supply is also expected to decrease after the country’s production exceeded its OPEC+ quota. Iraq plans to reduce oil production next month to between 3.85 million and 3.9 million bpd.
The number of active oil rigs in the U.S. was unchanged at 483 this week, but increased by one in August.
