Oil prices climbed 1% on Friday, breaking a four-day losing streak following a fire at one of the West Coast’s largest refineries in the United States. Despite the rebound, crude remains on track for its steepest weekly drop since late June.
Brent crude futures rose 61 cents, or 1%, to $64.73 a barrel by 06:58 GMT, while U.S. West Texas Intermediate (WTI) added 62 cents, or 1%, to $61.10 a barrel.
Fire at Chevron’s El Segundo Refinery
A blaze erupted Friday at Chevron’s El Segundo facility, one of the largest refineries on the U.S. West Coast. Local authorities confirmed that the fire was contained to a single area. In a regulatory filing, Chevron also reported emergency flaring at the 290,000-barrel-per-day refinery, which primarily produces gasoline, diesel, and jet fuel.
Weekly Losses Persist Amid Supply Concerns
Despite Friday’s gains, Brent remains down 7.6% and WTI 7% for the week, pressured by expectations that OPEC+ may boost output further, even amid oversupply concerns. Sources told Reuters that the OPEC+ alliance could approve an increase of up to 500,000 barrels per day in November—triple the October boost—as Saudi Arabia seeks to regain market share.
“If OPEC+ do go ahead and announce a 500,000 bpd increase this weekend, it’s likely a big enough increase to send crude oil lower again, initially to support at $58.00, before a test of this year’s lows (of around) $55.00,” said Tony Sycamore, an analyst at IG.
Analysts note that a combination of higher potential OPEC+ supply, reduced refinery runs globally due to maintenance, and seasonal drops in demand are likely to accelerate crude stockpiles in the U.S. and elsewhere.
U.S. Inventory Data Signals Growing Supply
The U.S. Energy Information Administration reported Wednesday that crude, gasoline, and distillate inventories rose last week, reflecting softer refining activity and weaker demand.
“We believe September marked a turning point, with the oil market now heading towards a sizeable surplus in Q4 2025 and into next year,” JPMorgan analysts said in a note.
Geopolitical Developments
Meanwhile, finance ministers from the Group of Seven nations stated Wednesday that they will intensify efforts to pressure Russia, targeting entities continuing to increase purchases of Russian oil.
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