Oil Prices Poised for Weekly Losses as Recession Fears Loom

Oil prices dropped Friday and are heading for a 3% weekly loss as uncertainty clouds global energy supply markets. Both major oil benchmarks hit their lowest levels in months, with US production reaching record highs that are pressuring prices downward.

By 0645 GMT, Brent crude futures fell 16 cents to $60.90 per barrel, down 0.26%. US West Texas Intermediate crude dropped 15 cents to $57.31 per barrel, also declining 0.26%.

The price decline comes as new data shows US oil production climbed to 13.636 million barrels per day - the highest level ever recorded. This surge in domestic production is adding supply pressure to global markets already dealing with demand uncertainty.

Thursday's trading session saw significant losses, with Brent crude falling 1.37% and US crude dropping 1.39%. The American benchmark hit its lowest point since May 5, signaling growing market concerns about oversupply.

For energy investors and traders, these developments highlight a key tension in oil markets. While geopolitical risks often support higher prices, the reality of record US production is creating downward pressure that's hard to ignore. The weekly loss of 3% shows this supply-side pressure is winning out over other market factors.

The uncertainty around global energy supplies reflects broader questions about economic growth and energy demand. Markets are trying to balance potential supply disruptions against the clear reality of increased American oil production, which continues to reshape global energy dynamics.