Oil Poised For Weekly Decline As OPEC+ Oversupply Concerns Linger

Oil prices were on track for a weekly decline for the first time since April after concerns over an output boost by OPEC+ continued to weigh on prices on Friday.

Brent crude futures fell about 0.6% to $64.06 per barrel, while West Texas Intermediate crude futures were down 0.7% at $60.80 per barrel at 4:57 am ET.

On Thursday, Brent touched its lowest in a week after Bloomberg reported that OPEC+ was planning to raise output for a third month and was considering a 411,000 barrels per day hike among other options.

Crude oil futures have already been pressured this week after U.S. crude and fuel inventories posted surprise stock builds last week. Oil imports rose to a six-week high, and gasoline and distillate demand fell.

“Another large increase for July would cement a shift in policy — from defending prices to defending market share,” Warren Patterson, head of commodities strategy for ING Groep NV, said, according to Bloomberg News.

In May, the International Energy Agency said that global oil demand growth is projected to slow from 990,000 barrels per day in the first quarter to 650,000 bpd for the remainder of the year as economic headwinds and record EV sales curb use.

OPEC+, which includes the likes of Saudi Arabia and Iraq, as well as allies such as Russia, has already pledged to reintroduce about 1 million barrels this year.

Markets are also eyeing talks between Iran and the U.S., which would occur in Rome on Friday.

The United States Oil Fund (USO) has fallen 12.6% year to date, while the Energy Select Sector SPDR Fund is down 5.4%.

Also See: Hallador Energy Stock Falls Premarket After Data Center Firm Terminates Exclusivity Deal

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