"Oil prices declined on Friday as signs of rising production helped ease geopolitical concerns that had bolstered the market this week", according to a story in the Wall Street Journal. "Russia’s energy minister indicated that the country may increase production by more than previously anticipated this year, which could undermine a joint agreement among major oil exporters to limit supply made in 2016."
"Meanwhile, anticipation of increased supply in North America also weighed on prices, traders said," and reported by The Journal.
"Data on Friday from Baker Hughes showed that the number of active oil rigs in the U.S. increased by three to 861. In the Permian Basin in West Texas, the number of active oil rigs climbed to match its highest total since January 2015."
"Expectations for a restart of operations at the Canadian oil-sands facility Syncrude at the end of the month also pressured the market, said Bob Yawger, director of the futures division at Mizuho Securities U.S.A," says The WSJ.
“People are trying to unload these barrels because they’re just not economical at these levels,” Mr. Yawger said.
"Major oil producers have been increasing production ahead of U.S. sanctions on Iran, due to come into force in November, which are likely to curb Iranian oil exports."
“The extra supply is coming before the loss of supply,” said Torbjørn Kjus, co-founder of oil trader Vistin Trading," according to the Journal Story.
Also, "On Wednesday, top crude exporter Saudi Arabia halted shipments via a Red Sea trade route due to attacks on two of its tankers by Houthi rebels. The market reaction was muted, analysts said, due to the kingdom’s recent increase in supply, alongside rising output from other members of the Organization of the Petroleum Exporting Countries and Russia", reports The WSJ.