SINGAPORE – Oil prices edged lower on Friday, marking a third consecutive monthly decline, as a stronger U.S. dollar curbed investor appetite for commodities and growing global supply offset the impact of Western sanctions on Russian exports.
Brent crude futures slipped 33 cents, or 0.51%, to $64.67 a barrel by 0027 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 35 cents, or 0.58%, to $60.22. Analysts said the dollar’s strength, following Federal Reserve Chair Jerome Powell’s remarks that a December rate cut was “not guaranteed,” weighed heavily on oil and other commodities.
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Both Brent and WTI are on track to fall around 3% in October, pressured by expectations that production increases from OPEC and other major producers will outpace demand growth. Sources said OPEC+ is leaning towards a modest output boost in December, with members already having raised their combined targets by over 2.7 million barrels per day — about 2.5% of global supply — in recent months.
Data also showed rising output from leading producers. Saudi Arabia’s crude exports hit a six-month high of 6.4 million barrels per day in August, while U.S. production reached a record 13.6 million bpd last week, according to the Energy Information Administration (EIA).
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Meanwhile, U.S. President Donald Trump announced that China had agreed to begin purchasing U.S. energy, potentially including oil and gas from Alaska. However, analysts expressed doubts about the scale of the impact, noting that Alaska accounts for just 3% of U.S. crude output and that any LNG purchases would likely be market-driven.