Oil Falls Again Ahead of OPEC+ Meeting
Oil fell at the end of a volatile week as traders weighed potential supply increases from OPEC+ and the risks of a trade war on demand against the threat of new U.S. sanctions on Iranian oil flows.
West Texas Intermediate crude fell below $59 a barrel, heading for a weekly loss of nearly 7%, while global benchmark Brent closed above $62 on Thursday. The Saudi-led alliance meets on Monday to outline supply policy for June, following reports that another major increase is set to be approved.
In the U.S., President Donald Trump said he would impose secondary sanctions on any country or company that buys Iranian oil, increasing pressure on Tehran as nuclear talks with Washington stall.
The threat sent prices higher on Thursday. Crude has fallen by almost a fifth this year, hitting a four-year low, as the Trump administration’s aggressive efforts to overhaul the global trading system through punitive levies have stoked fears that it will drag the economy into recession, hurting energy demand. This week’s data reinforced those concerns, with figures showing the U.S. economy shrank in the first quarter and Chinese manufacturing weakening.
WTI for June delivery fell 0.6% to $58.86 a barrel as of 7:29 a.m. in Singapore. Brent for July delivery closed 1.8% higher at $62.13 a barrel on Thursday.
Source: Bloomberg
