Oil prices fell on Friday as traders locked in some profits at the end of a positive week. Crude prices are set for their first weekly gain in four, driven by hopes of tighter supplies.
Brent oil futures expiring in August fell 0.6 percent to $82.22 a barrel, while West Texas Intermediate crude futures dropped 0.7 percent to $77.72 a barrel. Despite the pullback, both Brent and WTI contracts were up over 3 percent for the week.
OPEC+ commitment drives gains
The gains this week came as prices rebounded from four-month lows, after the Organization of Petroleum Exporting Countries and allies (OPEC+) reiterated its commitment to keeping production low to support prices. The OPEC+ had earlier signaled the possibility of scaling back its 2.2 million barrels per day production cuts, which was received negatively by crude markets. However, the group later clarified that any increase in production would depend on oil prices, helping to soothe concerns over higher supplies.
The OPEC+ also maintained its annual oil demand growth forecast in a monthly report, citing improved prospects from an eventual lowering in global interest rates.
Read more: Oil prices dip amid rising U.S. inventories as Fed keeps interest rates steady
Lingering demand and supply concerns
However, other market indicators still presented some headwinds for oil markets. U.S. inventories saw an unexpected build last week despite an expected pick-up in demand during the travel-heavy summer season. Additionally, the International Energy Agency lowered its demand growth forecast for the year and said it expected increased supply in non-OPEC nations, particularly the U.S., to cause a supply glut in the coming years.
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