Oil headed for the biggest weekly loss since late June as traders positioned for a key OPEC+ decision on supply this weekend.  Brent futures edged marginally higher on Friday, but were still trading below $65 a barrel and set for a weekly slump of about 8%. 

Prices have declined the past four days on the expectation OPEC+ will discuss fast-tracking more supply hikes. Meanwhile, efforts by the Trump administration to keep oil exports flowing from northern Iraq, as well as a US government shutdown, have added to the bearish sentiment.

The OPEC+ meeting comes as the oil market heads for a record surplus next year, according to the International Energy Agency. Traders have been closely watching China's buying, which has until now helped prevent a buildup of supply in a narrow set of hubs in Midwestern America and Northwest Europe.

"Looking back at the past four days' performance, it is tempting to conclude that the long-awaited glut expected to characterize the second half of the year is finally loudly knocking on the doors of our market," Tamas Varga, an analyst at brokerage PVM, wrote in a report.

The Organization of the Petroleum Exporting Countries raised output by 400,000 barrels a day in September, formally completing the restart of 2.2 million barrels a day shuttered by the group and its partners in 2023, according to a Bloomberg survey. (alg)

Source: Bloomberg