Crude oil prices climbed 1% on Friday, rebounding from four consecutive days of losses after a fire broke out at one of the largest refineries on the U.S. West Coast. Despite Friday’s gains, oil remains on track for its steepest weekly decline since late June.
Brent futures rose 61 cents, or 1%, to $64.73 a barrel by 06:58 GMT, while U.S. West Texas Intermediate (WTI) gained 62 cents, or 1%, reaching $61.10 a barrel.
Chevron El Segundo Fire Contained
The fire at Chevron’s El Segundo refinery, which has a capacity of 290,000 barrels per day, was confined to one section of the facility, a county official said. The refinery, which produces gasoline, diesel, and jet fuel, also carried out emergency flaring as part of the incident, according to a regulatory filing.
Weekly Losses Driven by Supply Expectations
Even with Friday’s recovery, Brent is still down 7.6% and WTI 7% on the week amid expectations that OPEC+ may further raise production despite global oversupply concerns. Reuters sources indicated that OPEC+ could approve a 500,000 barrels-per-day increase in November, triple the October hike, as Saudi Arabia seeks to recover market share.
“If OPEC+ do go ahead and announce a 500,000 bpd increase this weekend, it’s likely a big enough increase to send crude oil lower again, initially to support at $58.00, before a test of this year’s lows (of around) $55.00,” said Tony Sycamore, an analyst at IG.
Analysts warn that higher OPEC+ output, slowing refinery activity globally due to maintenance, and seasonal demand dips could accelerate U.S. and international crude stockpiles.
U.S. Stockpiles Rising
The U.S. Energy Information Administration reported on Wednesday that crude, gasoline, and distillate inventories rose last week, reflecting softer refining activity and weaker demand.
“We believe September marked a turning point, with the oil market now heading towards a sizeable surplus in Q4 2025 and into next year,” JPMorgan analysts said in a note.
Geopolitical Pressure on Russian Oil
The Group of Seven finance ministers announced on Wednesday plans to step up pressure on Russia, targeting those continuing to buy Russian oil amid global market tensions.
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