Hot news – Market players are likely to stay focused on global supplies in the week ahead, after oil prices suffered their third consecutive weekly loss, driven lower by indications of swelling U.S. crude stockpiles.
U.S. oil inventories rose 6.3 million barrels last week, almost double the amount analysts had forecast, the U.S. Energy Information Administration said on Wednesday.
It was the fifth straight weekly climb that has seen domestic supplies swell by a total of 28.7 million barrels over that period.
Meanwhile, the U.S. oil drilling rig count, an early indicator of future output, rose by two in the latest week to 875, the highest since March 2015, General Electric (NYSE:GE)’s Baker Hughes energy services firm said on Friday.
Against this backdrop, the market will continue to weigh concerns surrounding potential supply shortages from looming U.S. sanctions on Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC).
The sanctions, due to come into force Nov. 4, are being reinstated after U.S. President Donald Trump pulled out of the Iran nuclear deal earlier this year.
Oil prices finished higher on Friday, but crude futures still dropped for a third straight week as a slump in stock markets and concerns about trade wars clouded the fuel demand outlook.
December West Texas Intermediate crude, the U.S. benchmark, rose 26 cents, or roughly 0.4%, on Friday to settle at $67.59 a barrel by close of trade on the New York Mercantile Exchange.
Despite Friday’s gain, it suffered a weekly loss of about 2.2%.
Meanwhile, the global benchmark, Brent crude for January delivery on the ICE Futures Europe exchange, added 78 cents, or around 1%, to end at $77.66 a barrel.
It still posted a weekly decline of 2.7%.
Ahead of the coming week, Hot news has compiled a list of the main events likely to affect the oil market.
Tuesday, October 30
The American Petroleum Institute is to publish its weekly update on U.S. oil supplies.
Wednesday, October 31
The U.S. Energy Information Administration will release its weekly report on oil stockpiles.
Friday, November 2
Baker Hughes will release weekly data on the U.S. oil rig count.