Oil finishes down on possible OPEC+ output hike
Shafaq News/ US crude futures fell on Friday as traders expected OPEC+ would decide on Saturday to boost oil output for July beyond previous forecasts.
Brent crude futures settled down 25 cents, or 0.39%, at $63.90 a barrel. US West Texas Intermediate crude finished down 15 cents, or 0.25%, at $60.79 a barrel, having earlier dropped more than $1 a barrel.
The Brent July futures contract is due to expire on Friday. The more liquid August contract was down 71 cents, or 1.12%, at $62.64 a barrel.
At these levels, the front-month benchmark contracts were headed for weekly losses over 1%.
Prices dipped into negative territory after Reuters reported that OPEC+may discussan increase in July output larger than the 411,000 barrels per day (bpd) rise that the group decided on for May and June.
"What OPEC+ is planning doesn't look particularly supportive for the oil market," said Matt Smith, Kpler's lead analyst for the Americas.
The potential OPEC+ output 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 that they expected prices to remain within the current range before easing into the high $50s by year-end.
Phil Flynn, a senior analyst with Price Futures Group, said an online post on Truth Social by US PresidentDonald Trumpthat seemed to threaten more changes in tariff levels for Chinese imports also put pressure on crude prices.
"Trump's Truth Social message on China failing to observe a truce on tariffs also combined with the Reuters headline to push prices down," Flynn said.
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 animmediate blockon the sweeping duties.
US energy firms this week cut the number of oil and natural gas rigs operating for a fifth week in a row to the lowest since November 2021, energy services firm Baker Hughes(BKR.O), opens new tabsaid in its closely followed report on Friday.
It was the first time since September 2023 that the number of rigs declined for five straight weeks.
Baker Hughes said this week's decline put the total count down by 37 rigs, or 6%, from this time last year.
Oil rigs fell by four to 461 this week, their lowest since November 2021, the company said. Gas rigs rose by one to 99.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Iraqi News
5 hours ago
- Iraqi News
Iraq and OPEC+ members plan to raise oil output in July
Baghdad ( – Eight OPEC+ member countries, including Iraq, met virtually on Saturday to review global market dynamics and outlook. The eight OPEC+ countries, which previously announced further voluntary adjustments in April and November 2023, are Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, according to OPEC+. The eight member countries plan to implement an output modification of 411,000 barrels per day in July 2025, in accordance with the decision made in December 2024. This decision allows for a gradual and flexible return to the previously agreed voluntary adjustments of 2.2 million barrels per day, starting in April 2025. The planned gradual increases may be postponed or reversed if market conditions fluctuate. This flexibility will enable the organization to maintain its commitment to oil market stability. The eight OPEC+ countries also stated that this strategy will allow member countries to hasten their compensation. The eight countries reaffirmed their commitment to achieving full compliance with the Declaration of Cooperation, including the extra optional output adjustments that were agreed to be reviewed by the Joint Ministerial Monitoring Committee (JMMC) at its 53rd meeting in April 2024. OPEC+ members reiterated their plan to completely compensate for any overproduction volume since January 2024. They will meet monthly to discuss market circumstances, compliance, and compensation, with their next meeting to be held on July 6, 2025, to decide on August production levels.
Shafaq News
16 hours ago
- Shafaq News
Iraqi MP accused of exploiting oil job Issue for votes
Shafaq News/ On Saturday, an Iraqi labor rights official accused members of parliament in Basra of exploiting a long-standing employment issue in the oil sector to boost their campaigns ahead of Iraq's upcoming elections. Speaking to Shafaq News, Hakim al-Aidani, director of the Center for the Defense of Workers in Oil Fields, pointed to the renewed spotlight on the long-demanded 'safety passport,' a certification required by many seeking jobs in the province's oil industry. 'The issue first emerged when BP began operating in the fields,' al-Aidani recalled. 'Thousands of young people appealed for action, but the file remained ignored for years.' The current version of the document, known locally as the 'red passport,' is not accepted by oil companies, even for entry-level jobs such as cleaners at fields like Rumaila. Job seekers who obtain it are often rejected when they apply. Al-Aidani noted that Total, which now oversees multiple projects in Basra, requires a different type of certification. This shift follows earlier patterns, including a period when a Chinese operator invalidated the previously used 'green passport.' Each transition, he added, renders older documents useless and forces applicants to restart the process. He also questioned the move to offer the passport free of charge, after years during which applicants paid more than $500 to obtain it. 'Where were officials when young people were bearing these costs?' he asked.
Shafaq News
a day ago
- Shafaq News
Meta joins military tech sector with $100M partnership
Shafaq News/ Meta, the parent company of Facebook, has officially entered the military technology sector through a $100M strategic partnership with American defense startup Anduril. The collaboration is part of a broader $22B US Department of Defense initiative to enhance combat and tactical capabilities using smart, wearable technologies. Under the deal, Meta will develop advanced AI software, while Anduril will design field equipment, including next-generation helmets and extended reality (XR) headsets. These devices aim to help soldiers detect drones from afar, locate concealed targets, and operate autonomous weapon systems in complex combat environments. The gear leverages Meta's immersive tech breakthroughs—like those in its Quest VR platform—adapted for military use. Meta CEO Mark Zuckerberg expressed pride in this strategic shift, noting that the company's work in AI and XR is now 'ready to serve American troops who defend national interests.' Anduril founder Palmer Luckey, who previously led Oculus at Meta, said the partnership will produce cutting-edge technologies to make soldiers 'technologically superior to any potential enemy.' The move has also sparked political debate. Zuckerberg has faced criticism over his growing ties to figures close to President Donald Trump. He donated $1M to Trump's inaugural committee and recently appointed UFC chief Dana White, a known Trump ally, to Meta's board. At the same time, Meta has scaled back its diversity and inclusion initiatives—prompting speculation that one of Silicon Valley's largest firms is shifting politically.
