Oil prices head for weekly drop as OPEC+ may discuss larger output hike for July
LONDON: Oil prices were steady on Friday and headed for a second consecutive weekly loss, as investors weigh a potentially larger OPEC+ output hike for July, and uncertainty spreads around U.S. tariff policy after the latest courtroom twist.
Brent crude futures fell by 18 cents, or 0.28%, to $63.97 a barrel by 1308 GMT. U.S. West Texas Intermediate crude fell by 18 cents, or 0.3%, to $60.76 a barrel.
The Brent July futures contract is due to expire on Friday. The more liquid August contract was trading 33 cents lower, or 0.5%, at $63.02 per barrel.
At these levels, the front-month benchmark contracts were headed for weekly losses over 1%.
Price moves dipped into negative territory after Reuters reported that OPEC+ may discuss an increase in July output larger than the 411,000 barrels per day (bpd) that the group had made for May and June.
Oil prices fall on demand concerns in volatile session
'The oil price would probably only come under greater pressure if the oil-producing countries were to increase their production even more than in previous months or give indications that there will be similarly high production increases in the following months,' Commerzbank analysts said earlier on Friday in a note, published before the news.
The potential hike comes as the global surplus has widened to 2.2 million bpd, likely necessitating a price adjustment to prompt a supply-side response and restore balance, said JPMorgan analysts in a note, adding they expect prices to remain within the current range before easing into the high $50s by year-end.
U.S. President Donald Trump's tariffs were expected to remain in effect after a federal appeals court temporarily reinstated them on Thursday, reversing a trade court's decision a day earlier to put an immediate block on the sweeping duties.
Oil prices were down more than 1% on Thursday.
The appeals court's decision pushed Brent to the bottom of its recent tight range, Investec's head of commodities Callum Macpherson said.
Oil prices have lost more than 10% since Trump announced his 'Liberation Day' tariffs on April 2.
Also pressuring prices, U.S. consumer spending slowed in April, according to data published on Friday.
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