Oil dips ahead of expected OPEC+ output increase
Brent crude futures were down 62 cents, or 0.9%, at $68.18 a barrel by 1118 GMT while U.S. West Texas Intermediate crude fell 62 cents, or 0.93%, to $66.38. Trade was thinned by the U.S. Independence Day holiday.
Both contracts on track for a small weekly gain, with Brent trading about 0.6% higher than last Friday's close and WTI around 1.3% higher.
Eight OPEC+ countries are likely to make another oil output increase for August at a meeting on Saturday in their push to boost market share. The meeting had been moved forward a day to Saturday.
"If the group decides to increase its output by another 411,000 barrels per day (bpd) in August, as expected, for the fourth successive month, oil balance estimates for the second half of the year will be reassessed and will suggest accelerated swelling in global oil reserves," said PVM analyst Tamas Varga.
Crude prices also came under pressure from a report on U.S. news website Axios, saying that the United States was planning to resume nuclear talks with Iran next week, while Iranian foreign minister Abbas Araqchi said Tehran remained committed to the nuclear Non-Proliferation Treaty.
U.S. President Donald Trump said on Thursday that he would meet representatives of Iran "if necessary" even as the U.S. imposed fresh sanctions targeting Iran's oil trade. Meanwhile, uncertainty over U.S. tariff policy was back in the spotlight as the end of a 90-day pause on higher levies approaches.
Washington will start sending letters to countries on Friday, specifying what tariff rates they will face on goods sent to the United States, a clear shift from earlier pledges to strike scores of individual trade deals.
"The oil market might take on more of a direction next week once we have had the results of the OPEC+ meeting at the weekend and because Trump's tariff deadlines are due next week," said Investec's head of commodities, Callum Macpherson.
Separately, Barclays said it had raised its Brent oil price forecast by $6 to $72 a barrel for 2025 and by $10 to $70 a barrel for 2026 on an improved demand outlook.
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