Oil prices experienced another weak week, culminating in a 3% decline on Friday. West Texas Intermediate (WTI) crude closed at $73.55 per barrel, marking the third consecutive weekly loss. Brent crude also fell, ending the week at $76.93. For August, both benchmarks declined by 0.66%.
The U.S. rig count remained unchanged at 483, according to Baker Hughes. Despite ongoing unrest in Libya, Gaza, and Lebanon, as well as attacks on tankers in the Red Sea, oil prices failed to gain traction.
Last week's Baker Hughes report showed a decrease in U.S. oil and gas rigs. The total rig count fell by two to 583, compared to 631 a year ago. Oil rigs remained steady at 483, while gas rigs declined by two to 95.
Estimated U.S. oil production decreased by approximately 100,000 barrels per day to a current average of 13.3 million barrels.
Traders and companies are closely watching whether OPEC+ will proceed with a production increase in October. As Saxo's Ole Hansen noted, Libya's political turmoil and subsequent supply disruptions have made it easier to justify a production hike. However, Hansen believes that opposing forces, including soft demand and OPEC+'s potential increase, will likely keep prices within a narrow range.
