By Gina Lee
Investing.com – Oil was mixed Friday morning in Asia but set for its first weekly loss in at least eight weeks. U.S. oil stocks rose more than expected, while Iran signaled that it was resuming talks with Western powers that could result in an end to sanctions.
Brent oil futures edged up 0.20% to $83.83 by 10:59 PM ET (2:59 AM GMT) and WTI futures inched down 0.07% to $82.75. Both Brent and WTI futures were on track to fall about 1% for the week, the first weekly drop in 10 weeks for WTI, and the first in eight weeks for Brent.
Oil is coming off a recent two-month rally that was driven by rising coal prices in Europe and China and tight oil supplies. Wednesday’s crude oil supply data from the U.S. Energy Information Administration showed a 4.267-million-barrel build.
Investors now await the next meeting of the Organization of the Petroleum Exporting Countries and allies, or OPEC+, due to take place on Nov. 4. The cartel is expected to keep its plan to add 400,000 barrels per day of supply each month until April 2022 unchanged.
However, "Saudi Arabia [an OPEC+ member] has cautioned that, with an unclear demand picture, there could be a 'huge uplift' in global oil stocks in 2022," JPMorgan (NYSE:JPM) analysts said in a note.
Erratic fuel demand in some countries remains a concern, with China, the world’s top oil importer, aiming to curb pollution levels ahead of the Beijing Winter Olympics, due to open in February 2022. Certain parts of the country have also restricted mobility to curb the latest COVID-19 outbreak.