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Oil edges up, but on track for greatest weekly loss in over a month

Crude oil futures inched higher on Friday, supported by a surprise drop in U.S. oil stocks and simmering Middle East tensions, but rates were headed for their most significant weekly loss in more than a month on worries of lower need.

Brent crude futures rose 16 cents, or 0.2%, to $ 74.61 a barrel by 0025 GMT while U.S. West Texas Intermediate crude was at $70.84 a barrel, up 17 cents, or 0.2%.

Both contracts settled greater on Thursday for the first time in five sessions after information from the Energy Details Administration (EIA) revealed that U.S. crude oil, gas and extract stocks fell recently.

However, U.S. crude production struck a record high of 13.5 million barrels each day recently, EIA information revealed, contributing to concerns about increasing supply as Libyan output resumes and as the Company of the Petroleum Exporting Countries (OPEC) and their allies, a group called OPEC+, prepared to further relax production cuts in 2025.

Brent and WTI are set to fall about 6% this week, their most significant weekly decrease given that Sept. 2, after OPEC and the International Energy Firm cut their projections for international oil demand in 2024 and 2025 and as concerns eased about a potential retaliatory attack by Israel on Iran that might disrupt Tehran's. oil exports.

Speculative positioning across the ICE Brent complex. reinforced from traditionally low levels, on heightened. geopolitical risk of a potential Israeli strike on Iran's oil. infrastructure, Citi experts stated in a note.

While markets appear to have concentrated on reports that the. U.S. urged Israel not to target oil infrastructure, driving the. newest price easing, these risks stay high as rhetoric remains. heated, they included.

Citi expects worldwide oil demand to slow to 900,000 bpd in. 2025 from 1 million bpd this year on a financial downturn and as. more electric lorries hit the roadway.

The possible effect of China's emerging economic stimulus. intend on oil need doubts, and more robust support may. only lead to a limited boost, it included.

(source: Reuters)