Oil prices are on track for a weekly decline, pressured by reports suggesting the OPEC+ alliance may raise production, rising US crude inventories, and the resumption of nuclear negotiations between the US and Iran.
The international benchmark Brent crude was trading at $63.85 per barrel at 1.17 p.m. local time (1017 GMT) on Friday, marking a fall of around 1.7% from last week's closing price of $64.93.
Similarly, the American benchmark West Texas Intermediate (WTI) traded at $60.92 per barrel, down approximately 1.5% from last Friday's close of $61.88.
Despite the modest daily gains, prices fell throughout the week amid speculation that OPEC+ will consider boosting supply at its upcoming June 1 meeting. One scenario under discussion involves an additional increase of 411,000 barrels per day starting in July.
Analysts say such a move would mark a strategic pivot by the group鈥攆rom defending prices to safeguarding market share.
OPEC+ has already begun tapering its output cuts in May and June, and the upcoming meeting is expected to play a pivotal role in shaping global supply dynamics and price direction.
Adding to downward pressure, data from the US Energy Information Administration (EIA) showed a surprise build in commercial crude inventories, which rose by 1.3 million barrels last week. The increase has heightened concerns about a potential supply glut and signaled weakening demand.
Meanwhile, expectations of a potential breakthrough in US-Iran negotiations exerted additional downward pressure on oil prices throughout the week
The fifth round of US-Iran nuclear talks will begin today in Rome, with Oman acting as mediator. The negotiations remain deadlocked over Iran's uranium enrichment activities. The US demands a full halt to enrichment, while Iran maintains its right to enrich for peaceful purposes.
A breakthrough in talks or an easing of sanctions could pave the way for higher Iranian crude exports, further amplifying concerns about oversupply in an already fragile market.
By Duygu Alhan
Anadolu Agency