Oil edged up on Friday following three days of declines on worries about excess supply and slowing demand in the U.S., though prices are set for a second weekly loss.
Brent crude futures rose 28 cents, or 0.44%, to $63.66 a barrel at 0421 GMT. U.S. West Texas Intermediate crude was at $59.72 a barrel, up 29 cents, or 0.49%. Brent and WTI are set to fall about 2% this week, down for a second straight week, as major global producers increase output.
The price drop is driven by a surprise 5.2 million-barrel U.S. inventory build that reignited oversupply fears, IG Markets analyst Tony Sycamore said.
“This has been amplified by risk-aversion flows, bolstering the dollar and the ongoing U.S. government shutdown, which continues to cloud economic activity,” he added.
U.S. crude stocks rose more than expected on higher imports and reduced refining activity, while gasoline and distillate inventories declined, the Energy Information Administration said on Wednesday.
Oil prices were also pressured by concerns about the effects of the longest government shutdown in the history of the U.S. on the broader economy.
