Oil prices rose on Friday, but remained on track for a weekly drop on concerns about rising supplies and amid fears that a downturn in major economies following an escalation of protectionist measures could hamper demand for the commodity.
Brent oil for September delivery was up 0.79 percent at $73.17 a barrel, but remained on track for its third weekly loss.
U.S. West Texas Intermediate crude was up 46 cents or 0.66 percent at $68.70 a barrel in an environment of increasing volatility and waning risk appetite.
Prices remain supported by Saudi Arabia’s comments that the kingdom’s exports will likely fall next month and inventories might be squeezed in the third quarter.
Saudi Arabia expects exports to drop by roughly 100,000 barrels per day in August compared with July. The kingdom’s OPEC Governor Adeeb Al-Aama dismissed market concerns over an oil glut as baseless.
A weaker Chinese yuan remains a source of risk for global currency markets after China weakened its currency by the most in two years, hours after U.S. President Trump called out the currency’s slide.
Trump also expressed frustrations with the Federal Reserve for raising interest rates.