Crude Oil prices slipped on Friday, heading for their third consecutive monthly decline. A stronger U.S. dollar and rising global supply continued to pressure the market, offsetting the impact of Western sanctions on Russian exports.
By 0027 GMT / 5:27 AM Pakistan Standard Time (PST), Brent crude futures fell 33 cents, or 0.51%, to $64.67 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) dropped 35 cents, or 0.58%, to $60.22. Both benchmarks are on track to fall about 3% in October, marking a third straight month of decline.
Analysts noted that a stronger U.S. dollar weighed on investor appetite across the commodities complex. The dollar strengthened after Federal Reserve Chair Jerome Powell said that a December rate cut was not guaranteed.
Global Crude Oil Supply Keeps Rising
Oil supply continues to expand faster than demand. The Organisation of the Petroleum Exporting Countries (OPEC) and its allies have been increasing production to gain market share. Together, the OPEC+ members have raised output by over 2.7 million barrels per day, roughly 2.5% of global supply.
Sources familiar with the talks said OPEC+ is leaning toward a modest output boost in December, ahead of its upcoming meeting on Sunday.
Meanwhile, Saudi Arabia’s crude exports hit a six-month high of 6.407 million barrels per day in August, according to Joint Organisations Data Initiative (JODI) data. Exports are expected to rise further. In the U.S., the Energy Information Administration (EIA) reported record production of 13.6 million barrels per day last week.
Trade and Sanctions Impact
Despite Western sanctions disrupting Russian exports, ample supply from other producers is cushioning the impact on top buyers like China and India.
U.S. President Donald Trump said on Thursday that China has agreed to start purchasing U.S. energy, possibly involving oil and gas from Alaska. However, analysts remain cautious.
Barclays analyst Michael McLean said in a note:
“Alaska produces only 3% of total US crude oil output (not significant), and we think Chinese purchases of Alaskan LNG likely would be market driven.”