Oil headed for a second weekly gain after OPEC+ leaders Saudi Arabia and Russia tightened supplies and US crude stockpiles fell.

West Texas Intermediate was steady below $72 a barrel, on course for a weekly advance of nearly 2%. The US crude benchmark is set for the first back-to-back weekly increase since late-May, with near-term time spreads flipping into a narrow backwardated structure, a bullish pricing pattern.

Saudi Arabia set large price increases for its crude to Europe and the Mediterranean after announcing an extension into August of its unilateral 1-million-barrel-a-day supply cut. In addition, Russia said it would reduce exports by half a million barrels, although output won't be lowered.

In the US, official data showed nationwide crude stockpiles dropped for a third week, sliding by 1.5 million barrels to take holdings to their lowest level since late January. Oil holdings at the key Cushing, Oklahoma, storage hub also eased, while inventories of gasoline and distillates dropped.

WTI for August delivery was little changed at $71.80 a barrel at 9:40 a.m. in Singapore. Brent for September settlement was 0.04% lower at $76.49 a barrel.

Source: Bloomberg