Oil market fell sharply on concerns over OPEC+ lifting outputs

International benchmarks for crude oil fell sharply on Friday, 30 August as markets anticipated an OPEC+ supply increase from October and lower chances of a significant interest rate cut in the US. 

Brent crude for October delivery dropped $1.14, or 1.43%, to $78.80/barrel, ending the week down 0.3% and losing 2.4% for the month. 

WTI crude fell $2.36, or 3.11%, to $73.55, with a weekly loss of 1.7% and a 3.6% decline in August.

Bloomberg reported that OPEC+ is set to proceed with its planned output hike, balancing Libyan outages and member cuts against weak demand. Meanwhile, solid US consumer spending in July reduced hopes for a half-point rate cut by the Federal Reserve next month, adding further pressure to oil prices.

Written by: Rochelle Nguyen