Investing.com – Crude futures settled lower on Friday, as sentiment on oil soured after data indicating that Opec’s supply was set to rise compared to June reduced investor confidence in Opec’s ability to curb production.
On the New York Mercantile Exchange crude futures for July delivery fell 2.5% to settle at $45.77 a barrel, while on London's Intercontinental Exchange, Brent dropped 2.76% to trade at $47.94 a barrel.
Opec's July oil supply was set to rise by 145,000 barrels per day (bpd) compared to June, Reuters reported citing data from PetroLogistics, a company that tracks Opec supply forecasts.
The increase in oil supply would push production above 33 million barrels per day, and further reduce Opec’s compliance rate - with the deal curb production – which fell to 78% to June.
Higher supply from Saudi Arabia, the United Arab Emirates (UAE) and Nigeria would drive this month's gains, according to PetroLogistics.
The bearish news came ahead of data showing a slowdown in U.S. drilling activity suggesting a possible tightening in U.S. production growth.
Oilfield services firm Baker Hughes reported its weekly count of oil rigs operating in the United States ticked down by one rig to a total of 764.
The slump in oil prices on Friday, erased earlier gains during the week, as crude futures posted a weekly loss ahead of the Opec meeting on July 24.
Opec is not expected to introduce additional measures to curb the recent growth in supply, as some members believe it’s too early to determine whether the current level of production cuts need to be deepened.
"We are in the first two weeks of the extension period. It is too early to say now what I will do in November," Kuwait's oil minister Essam al-Marzouq said on Tuesday.
In May, Opec and non-Opec members agreed to extend production cuts of 1.8m bpd for a period of nine months until March but rising production from the U.S., Nigeria and Libya has undermined the cartel’s efforts to curb excess supply.