Investing.com - Oil prices fell sharply on Friday to log their sixth weekly loss in the past seven weeks, as concerns over a glut in the market continued to weigh on sentiment.
The U.S. West Texas Intermediate crude August contract tumbled $1.29, or around 2.9%, to end at $44.23 a barrel by close of trade Friday. It touched its lowest since June 28 at $43.78 earlier.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery sank $1.40, or 2.9%, to settle at $46.71 a barrel by close of trade, after touching a two-week low of $46.28 earlier in the session.
For the week, WTI lost $1.81, or about 3.9%, while Brent fell $2.06, or roughly 4.2%, their sixth such loss in seven weeks.
U.S. drillers added seven oil rigs in the week to July 7, energy services company Baker Hughes announced on Friday. This brings the total count up to 763, the most since April 2015.
The report came after U.S. government data revealed that total domestic crude production rose by 88,000 barrels a day to around 9.34 million barrels at the end of last week, underlining concern that the ongoing rebound in U.S. shale production is derailing efforts by other major producers to rebalance the market.
In May, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.
So far, the production-cut agreement has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, and a relentless increase in U.S. shale oil output.
Russia, which is cooperating with OPEC in a deal to stem production, said it was ready to consider revising parameters of the deal if needed.
Oil ministers from five countries monitoring the deal plus Saudi Arabia will meet on July 24 in Russia, when they could recommend adjusting the pact.
OPEC officials have been talking about whether production by Libya and Nigeria should be capped, although such a step would face resistance from those countries.
Elsewhere on Nymex, gasoline futures for August slumped 3.0 cents, or about 2%, to end at $1.498 on Friday, for a weekly loss of around 1.1%.
August heating oil finished down 3.3 cents, or 2.3%, at $1.448 a gallon, with a decline of almost 1.9% on the week.
Natural gas futures for August delivery dipped 2.4 cents to settle at $2.864 per million British thermal units. It saw a weekly loss of roughly 5.6%.
In a report delayed by a day because of the Independence Day holiday, the Energy Information Administration on Friday said U.S. supplies of natural gas rose by 72 billion cubic feet for the week ended June 30.
In the week ahead, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer.
Meanwhile, investors will keep an eye out for monthly reports from the Organization of Petroleum Exporting Counties and the International Energy Agency to assess global supply and demand levels.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Tuesday, July 11
The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, July 12
The Organization of Petroleum Exporting Counties will publish its monthly assessment of oil markets.
Later in the day, the U.S. Energy Information Administration is to release weekly data on oil and gasoline stockpiles.
Thursday, July 13
The International Energy Agency will release its monthly report on global oil supply and demand.
The U.S. government is set to produce a weekly report on natural gas supplies in storage.
Friday, July 14
Baker Hughes will release weekly data on the U.S. oil rig count.