Oil settles down, posts 3% weekly gain

Oil drilling rigs

Oil prices settled lower on Friday, pressured by supply glut concerns and signs of weakness in the US economy. However, prices posted weekly gains supported by easing global trade tensions.

Brent crude futures for October delivery fell 2.83%, or $2.03, to settle at $69.67 per barrel. Despite the drop, Brent recorded a 3% gain for the week.

Meanwhile, US WTI crude futures for September delivery dropped 2.79%, or $1.93, to $67.33 per barrel, trimming their weekly gain to 3.33%.

The decline came amid media reports suggesting that OPEC+ may agree this weekend to raise the group’s production ceiling by 548,000 barrels per day in September.

Meanwhile, the US monthly jobs report showed weaker-than-expected job additions in July, alongside significant downward revisions for the previous two months, totaling 258,000 jobs. The unemployment rate also rose to 4.2%.

These figures raised investor concerns about the outlook for the US labor market and, by extension, economic growth and energy demand in the world’s largest economy.

Separately, data from Baker Hughes revealed that the number of active oil rigs in the U.S. fell for the 14th consecutive week — a signal that U.S. crude production could be headed for a sharp decline.