Oil set for the third monthly drop

Brent crude oil futures fell toward $64 per barrel on Friday, on track for a third consecutive monthly decline, as rising global output continued to weigh on market sentiment ahead of the upcoming OPEC+ meeting.

The producer group is reportedly considering a production increase of 137,000 barrels per day (bpd) in December as part of a broader effort to regain market share, adding to an already well-supplied global market.

Data shows Saudi Arabia’s crude exports climbed to a six-month high of 6.41 million bpd in August, with further increases expected in the coming months.

At the same time, the U.S. Energy Information Administration (EIA) reported record American output of 13.6 million bpd last week, underscoring the strength of non-OPEC supply.

These supply-side developments may help offset the potential impact of new U.S. sanctions on major Russian oil producers, as investors assess how the measures could influence export flows to key global buyers.

Adding a geopolitical dimension, President Donald Trump announced that China has agreed to resume purchases of U.S. energy products, including a potential large-scale oil and gas deal from Alaska, raising hopes for a partial improvement in trade relations.

Elsewhere, a stronger U.S. dollar exerted additional pressure on commodity prices, making oil and other dollar-denominated assets more expensive for foreign buyers.

Similarly, WTI crude oil futures dropped toward $60 per barrel, mirroring Brent’s decline, as concerns over persistent oversupply and muted demand growth continued to dominate the energy market outlook.