Investing.com - Oil traders will continue to focus on a slew of bearish factors affecting the market in the week ahead, including emerging evidence of oversupply and renewed worries over a slowdown in global demand.
Crude prices have been on the backfoot recently, with WTI posting its fifth straight weekly loss on Friday, while Brent suffered its fourth week of declines in five, amid reports of faster supply increases from major global producers.
U.S. benchmark oil, September West Texas Intermediate crude, ended Friday's session down 47 cents, or 0.7%, at $68.49 a barrel, with the contract down around 0.3% from last week’s finish.
October Brent crude, the global benchmark, fell 24 cents to $73.21, with the contract marking a weekly loss of around 2.1%.
Russian oil output rose by 150,000 barrels per day (bpd) in July from a month earlier, to 11.21 million bpd, energy ministry data showed recently.
Output by top exporter Saudi Arabia has also risen recently, to around 11 million bpd, and U.S. production is around that level as well, adding to indications of more ample supply.
The Organization of the Petroleum Exporting Countries (OPEC) and other oil producers led by Russia agreed in June to ease production curbs to make up for lost supplies out of Libya, Venezuela and Iran.
The deal effectively increases combined oil output by 1 million bpd.
Meanwhile, concern over slowing economic growth because of a trade dispute between the United States and China are also putting downward pressure on the market.
China announced it would impose tariffs on $60 billion in U.S. goods, the latest development in an escalating trade dispute that has raised concerns about a slowdown in economic growth that could ding demand for crude.
Elsewhere, investors will also be watching developments in the Middle East next week, as the first wave of U.S. sanctions on Iran go into effect Monday.
The sanctions are being reinstated after U.S. President Donald Trump pulled out of the Iran nuclear deal earlier this year. The first sanctions include aerospace, automotive and metals trading. Sanctions on oil are due in November.
Ahead of the coming week, Investing.com has compiled a list of the main events likely to affect the oil market.
Tuesday, August 7
The American Petroleum Institute is to publish its weekly update on U.S. oil supplies.
Wednesday, August 8
The U.S. Energy Information Administration will release its weekly report on oil stockpiles.
Friday, August 10
Baker Hughes will release weekly data on the U.S. oil rig count.