Investing.com – WTI crude oil prices settled lower on Friday, but notched their third straight week of gains as falling production in Venezuela and pending U.S. sanctions on Iran helped offset signs of an expansion in U.S. output.
On the New York Mercantile Exchange crude futures for June delivery fell 21 cents to settle at $71.28 a barrel, while on London's Intercontinental Exchange, Brent fell 74 cents to trade at $78.56 a barrel.
The number of oil rigs operating in the US was unchanged at 844, but remained at their highest level since March 20, 2015, according to data from energy services firm Baker Hughes.
Yet, concerns about rising U.S. production continued to be overshadowed as analysts claimed that rising U.S. shale production would struggle to meet the prospect of global supply shortage.
“US shale cannot solve the current oil supply problems,” Goldman Sachs said earlier this week, citing oil fundaments had improved as robust demand faced supply disappointments.
Investor expectations of a global oil supply shortage comes amid a U.S. announcement this month that it would renew sanctions on Iran – expected in two waves – on Aug 6. And Nov. 5, crippling the Islamic Republic’s energy exports.
Ongoing production woes in Venezuela, meanwhile, added to the prospect of lower global oil supplies, the International Energy Agency said earlier this week.
"The potential double supply shortfall represented by Iran and Venezuela could present a major challenge for producers to fend off sharp price rises and fill the gap, not just in terms of the number of barrels but also in terms of oil quality," the International Energy said on Wednesday.
But, the impact on global crude supplies from looming U.S. sanctions on Iran is still unclear as Europe and China refused to support the restrictions.
Goldman Sachs remained bullish, however, citing earlier this month, the sanctions could boost oil prices by as much as $6.50 a barrel.