Oil prices eased in early Asian trading on Friday as market participants weighed uncertainty over potential output decisions by OPEC+, which is scheduled to meet over the weekend.
Crude benchmarks were set for weekly declines, pressured in part by an unexpected rise in U.S. inventories, which sparked concerns about weakening fuel demand.
Brent crude for November delivery slipped 0.2% to $66.83 a barrel, while West Texas Intermediate (WTI) futures fell 0.2% to $62.88 a barrel as of 20:38 ET (00:38 GMT).
OPEC+ Output Uncertainty Clouds Market
Oil was on track for weekly losses of 1% to 1.5% amid worries about rising supply alongside softening demand. OPEC+—the Organization of the Petroleum Exporting Countries and its allies—is set to convene this weekend.
Recent reports suggest some members are considering additional production hikes, following the cartel’s increase of around 2.2 million barrels per day so far in 2025. Any further output expansions would continue to reverse the deep cuts OPEC implemented over the past two years, as the group seeks to bolster production and regain market share.
Russian oil production remains a key focus, amid U.S. efforts to discourage major buyers such as India and Europe from sourcing more oil from Moscow. Nevertheless, Russia recently committed to supplying at least 2.5 million metric tons of oil annually to China via Kazakhstan, likely keeping production levels elevated.
U.S. Inventories Rise Unexpectedly
U.S. crude stocks added to market caution after the Energy Information Administration reported a surprise inventory increase of 2.415 million barrels in the week ending August 29, versus expectations for a 2 million-barrel draw.
Distillate inventories also saw unexpected growth, while gasoline stocks experienced a draw larger than anticipated. The figures heightened concerns over cooling U.S. fuel demand, particularly following the end of the busy summer travel season.
Signs of a softening labor market have further fueled worries about domestic fuel consumption in the months ahead. Attention now turns to the U.S. nonfarm payrolls data for August, due later in the day, which could provide additional insight into economic trends and potential interest rate moves.
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