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Crude down for a third consecutive session

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US crude inventories rise by 2.4 million barrels

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OPEC+ to consider further output hike on Sunday, sources

say

(Changes headline)

By Alex Lawler

LONDON, Sept 5 (Reuters) - Oil extended its decline into

a third session on Friday, heading for a weekly loss for the

first time in three weeks as expectations grow of higher supply

and a surprise increase in U.S. crude inventories added to

demand concerns.

Reuters reported on Wednesday that eight members of OPEC+

will consider raising production further at a meeting on Sunday.

U.S. crude inventories rose 2.4 million barrels last week,

rather than falling as analysts expected.

Brent crude futures fell 35 cents, or 0.5%, to

$66.64 a barrel by 0810 GMT, while U.S. West Texas Intermediate

crude dropped 33 cents, or 0.5%, to $63.15.

"There are increasing stories and signs of a future where

feedstock supply is unlikely to be a problem," said John Evans

at oil broker PVM.

For the week, Brent is down 2.2% and WTI down 1.3%.

Expectations are growing that the Organization of the

Petroleum Exporting Countries and allies like Russia - known

together as OPEC+ - will push more barrels into the market to

regain market share at Sunday's meeting.

Another boost would mean that OPEC+, which pumps about half

of the world's oil, would be starting to unwind a second layer

of output cuts of about 1.65 million barrels per day, or 1.6% of

world demand, more than a year ahead of schedule.

Strength in the downstream sector has been a key support for

prices, BMI analysts said in a report, but refining margins will

likely be squeezed in coming months as global demand growth

wanes and refiners ramp up maintenance.

Supply risks continue to support the market, however. U.S.

President Donald Trump told European leaders on Thursday that

Europe must stop buying Russian oil, a White House official

said.

Any cuts to Russia's crude exports or other disruption to

supplies could push global oil prices higher.

(Additional reporting by Siyi Liu in Singapore, Editing by

Alexandra Hudson)