# Oil prices set for first weekly drop since August as supply concerns ease Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-29 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Oil Prices Edge Up Amid Talks of Sanctions Relief Meta Description: Despite first weekly losses in at least eight weeks, oil prices rise slightly as U.S. oil stocks increase and Iran resumes talks with Western powers. URL: https://financedigest.com/oil-prices-set-for-first-weekly-drop-since-august-as-supply-concerns-easehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-29t023007z2lynxmpeh9s03krtroptp4climate-un-oil-investors-1736837499970-compressed.jpg) By Roslan Khasawneh and Sonali Paul SINGAPORE (Reuters) -Oil prices edged up on Friday but were headed for their first weekly losses in at least eight weeks after U.S. [oil stocks](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") rose more than expected and Iran flagged it was resuming talks with Western powers which could lead to an end to sanctions. Brent crude futures rose 19 cents, or 0.2%, to $84.51 a barrel by 0400 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 2 cents to $82.83 a barrel. The rally has likely neared its peak and prices, while remaining elevated, will soften in the near term,” analysts at Fitch [Solutions said in a weekly note](https://www.financedigest.com/the-patient-engagement-solutions-market-to-grow-on-a-satisfactory-note.html "The Patient Engagement Solutions Market to grow on a satisfactory note") on Friday. Both benchmarks were on track to fall about 1% for the week – the first [weekly drop in 10 weeks](https://www.financedigest.com/global-equity-funds-see-biggest-weekly-outflow-in-five-weeks.html "Global equity funds see biggest weekly outflow in five weeks") for WTI and the first in eight weeks for Brent. The heat has come out of a two-month rally stoked by tight gas and coal [prices in Europe](https://www.financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israel.html "Tesla expands discounts with price cuts in Europe, Singapore, Israel") and China which had spurred fuel-switching in power generation to fuel oil and diesel while oil supplies were tight. U.S. [oil stocks](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") rose much more than expected in the week to Oct. 22, [data from the Energy Information](https://www.financedigest.com/more-than-half-52-of-cisos-are-prioritising-gdpr-compliance-over-the-next-12-months-new-data-from-the-2017-financial-services-information-security-network-shows.html "More than half (52%) of CISOs are prioritising GDPR compliance over the next 12 months, new data from the 2017 Financial Services Information Security Network shows") Administration showed on Wed. \[EIA/S\] [“Crude prices](https://www.financedigest.com/oil-prices-dip-on-u-s-crude-reserve-release-inflation-pressure.html "Oil prices dip on U.S. crude reserve release, inflation pressure") were ripe for a pullback, but with an oil deficit that will remain in place well into next year, energy traders will buy most dips if OPEC+ remains disciplined in gradually increasing output,” Edward Moya, senior market analyst at OANDA told Reuters. All eyes are on the [next meeting of the Organization](https://www.financedigest.com/the-next-10-years-to-look-through-organic-concentration-of-the-bicycle-bearings-market-at-a-cagr-of-7.html "The next 10 years to look through organic concentration of the Bicycle Bearings Market at a CAGR of 7%") of the Petroleum Exporting Countries (OPEC), Russia and their allies, together called OPEC+, on Nov. 4. Analysts [expect the bloc to stick to its plan to add 400,000 barrels per day of supply](https://www.financedigest.com/gsk-expects-us-launch-of-rsv-vaccine-with-no-supply-issues.html "GSK expects US launch of RSV vaccine with no supply issues") each month until April 2022. Saudi Arabia has cautioned that, with an unclear demand picture, there could be a ‘huge uplift’ in [global oil stocks](https://www.financedigest.com/dollar-jumps-u-s-stocks-buck-global-rally.html "Dollar jumps, U.S. stocks buck global rally") in 2022,” JPMorgan analysts said in a note. Concerns about erratic demand growth persist, with [China looking to curb](https://www.financedigest.com/oil-hits-3-week-high-as-china-eases-covid-curbs.html "Oil hits 3-week high as China eases COVID curbs") pollution ahead of the Beijing Winter Olympics and restricting mobility to curb any outbreaks of COVID-19. [China reported](https://www.financedigest.com/worst-flooding-since-1998-leaves-33bn-economic-toll-in-china-according-to-aon-catastrophe-report.html "Worst flooding since 1998 leaves bn economic toll in China, according to Aon catastrophe report") 64 new confirmed coronavirus cases for Oct. 28, compared with 39 a day earlier, the country’s health authority said on Friday. (Reporting by Roslan Khasawneh in Singapore and Sonali Paul in Melbourne; Editing by Kenneth Maxwell and Lincoln Feast.) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---