Oil prices rose in early trading on Friday, but are headed for a second week of losses amid concerns about a supply glut and slowing demand in the United States.
Price update
Brent crude futures rose 21 cents, or 0.33 percent, to $63.59 a barrel by 0149 GMT. U.S. West Texas Intermediate crude futures were at $59.65 a barrel, up 22 cents, or 0.37 percent, according to Reuters data.
Both crude oil benchmarks are heading for a decline of about two percent this week, for the second week in a row, amid increased production by major global producers.
Tony Sycamore, an analyst at IG Markets, said the price decline was driven by a surprise increase in US inventories of 5.2 million barrels, exacerbating concerns about a supply glut.
The Energy Information Administration reported Wednesday that U.S. crude oil inventories rose more than expected due to increased imports and reduced refining activity, while gasoline and distillate stocks declined.
Oil prices are also under pressure due to concerns about the broader economic impact of the longest government shutdown in US history.
OPEC+ countries and their allies decided on Sunday to increase production slightly in December while temporarily suspending increases for the first quarter of next year for fear of oversupply.
Following the OPEC+ decision, Saudi Arabia, the world's largest oil exporter, cut its crude prices for Asian buyers in December, reflecting ample supplies in the market, according to Reuters.
