Oil Ends Week Lower Amid Expectations of New OPEC+ Output Hike

Quick overview

Oil prices dropped on Friday amid expectations that OPEC+ may decide to increase oil production in July beyond previously announced levels.

Brent crude futures were down 23 cents, or 0.53%, trading at $63.79 per barrel. U.S. West Texas Intermediate (WTI) crude fell 73 cents, or 1.2%, to $60.21.

The Brent July contract expires today. The more actively traded August contract was down 67 cents, or 1.06%, at $62.67.

Both front-month contracts were on track to post weekly losses of just over 1%.

Prices turned negative after Reuters reported that OPEC+ could consider a production increase for July that exceeds the previously planned 411,000 barrels per day hike scheduled for May and June.

Market Sentiment Hit by Supply Concerns

“The prospect of a larger OPEC+ supply boost doesn’t appear particularly favorable for the oil market,” analysts noted.

In the U.S., broader Trump-era tariffs will remain in place after a federal appeals court on Thursday temporarily reinstated them, reversing a trade court’s ruling that had ordered their suspension. That news helped push crude prices down over 1% on Thursday, as traders weighed the potential impact of ongoing tariff uncertainty.

Analysts say volatility may continue while the legal battle over the tariffs plays out in the courts.

The stage is set for another production increase, potentially exceeding the 411,000 barrels per day (bpd) agreed upon in the previous two meetings.

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Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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