(Bloomberg) — Oil headed for its biggest weekly decline since February on signs of weakening demand, fueling speculation that OPEC+ will prolong output cuts to shore up prices.
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Brent traded below $84 a barrel for a weekly loss of more than 6%, while West Texas Intermediate traded near $79 a barrel. Almost 90% of traders and analysts surveyed by Bloomberg predict the Organization of the Petroleum Exporting Countries and its allies will extend curbs when they meet on June 1.
Oil has dropped about 10% from a five-month high in mid-April as the fallout from Iran’s unprecedented attack on Israel remained limited. A surprise jump in US crude inventories on Wednesday sparked a drop in futures, adding to concerns about demand from top importer China and weakness in product markets including diesel and gasoline.
OPEC “will make the difference in terms of supply-demand balance,” Shell Plc Chief Financial Officer Sinead Gorman said on an earnings call on Thursday. That follows a warning by the International Energy Agency last month that global oil markets could tip back into surplus if the group and its allies relaxes supply restraints as demand slows.
The United Arab Emirates’s main oil company said it bolstered its production capacity, highlighting the potential for the key OPEC member to renew its push to pump more oil at the meeting.
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