Oil Rises as Traders Watch for Trade Signals Before OPEC+ Meeting
Oil rose, paring a sharp weekly loss, as traders weighed the possibility of U.S.-China trade talks and the threat of new sanctions on Iran against potential increases in supply from OPEC+. Global benchmark Brent rose near $63 a barrel, though still headed for a weekly loss of more than 6%, while West Texas Intermediate neared $60. Beijing said on Friday it was assessing the possibility of talks with the U.S., helping oil bounce back to intraday gains as risk appetite improved.
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. Crude is still down about 16% this year, hitting a four-year low, as the Trump administration’s efforts to rework the global trading system through punitive levies have stoked concerns that it could drag the economy into recession, hurting energy demand.
Additionally, OPEC+’s moves to ease supply curbs have hurt prices, with the Saudi-led alliance set to meet on Monday to frame supply policy for June. OPEC+ has ample capacity to restart, reinforcing concerns that global crude supply will outstrip demand through 2025. Traders now widely expect the group to sign off on another surge, according to a Bloomberg survey.
Last month, the cartel agreed to revive three times the volume it had originally planned. There is a “confluence of factors ranging from rising supply, weakening demand and strategic shifts by major producers like Saudi Arabia” weighing on oil, said Yeap Jun Rong, market strategist at IG Asia Pte. Still, “prices are trying to stabilize from recent bearish sentiment, with the deadlock in U.S.-Iran talks raising the prospect of further sanctions on major global oil producers.”
Brent for July delivery rose 0.9% to $62.67 a barrel as of 10:52 a.m. in Singapore.
WTI for June delivery rose 1% to $59.81 a barrel.
Source: Bloomberg
