Brent crude oil prices rose slightly to about $64.4 a barrel on Friday, but they remain near a four-month low and are on track for their worst week since June.
The modest rebound did little to calm market nerves, as concerns about oversupply continue to weigh heavily.
OPEC+ is reported to be considering another production increase in November, possibly adding as much as 500,000 barrels a day, three times the amount raised in October.
Saudi Arabia is said to be pushing for the move as it seeks to regain market share. Traders fear that more oil at a time of weak demand would worsen an already fragile balance and drag prices even lower.
That concern has been reinforced by data from the US Energy Information Administration, which showed that crude, gasoline, and distillate inventories all rose last week. Refinery activity slowed and fuel demand fell, suggesting the market is already oversupplied.
Adding more barrels on top of this could tip the market further into surplus, leaving producers struggling to defend prices.
Fears about weaker economic activity also play a role. The possibility of a US government shutdown could hurt demand, while the restart of Kurdish oil exports from Iraq means extra supply returning to the global market.
On the geopolitical front, finance ministers from the G7 pledged to intensify action against Russia, promising to target those expanding purchases of its oil in an effort to limit Moscow’s revenues.
