Oil Heads For Biggest Weekly Loss Since May

Oil prices fell Friday, July 16, heading for their biggest weekly drop since at least May.

Expectations of an increase in supply raised investor concerns, as OPEC is likely to raise production in line with a possible recovery in demand as more countries recover from the Covid-19 pandemic.

The price of Brent crude for September delivery fell by about 20 cents to $ 73.27 a barrel and is heading for a loss of 3% this week after two days of sharp declines, the largest weekly decline since May.

US crude for August delivery fell 19 cents to $71.46 a barrel and is also on track to fall about 4% this week, the biggest weekly decline since March.

Discussions on the supply policy for the Organization of the Petroleum Exporting Countries, Russia, and other producers, within the framework of the OPEC+ group, ended without an agreement this month after the UAE objected to extending the production policy beyond April 2022.

Saudi Arabia and the United Arab Emirates reached a compromise this week, paving the way for OPEC+ to finalize a deal that would allow more supply into the market.