Oil Set for Weekly Slump as OPEC+ Weighs Another Big Supply Hike
Oil extended this week’s decline as OPEC+ weighs another bumper production increase that could add supplies into a market already expected to face a glut.
Brent traded near $64 a barrel, declining for a fourth session and bringing its weekly loss to about 2%. OPEC and its allies discussed another major output-quota increase of 411,000 barrels a day for July, although no agreement has yet been made, delegates said.
Crude has shed about 14% this year, hitting the lowest since 2021 last month, as OPEC+ loosened supply curbs at a faster-than-expected pace, just as the US-led tariff war posed headwinds for demand. Prices had recovered some ground with the easing of trade tensions, but data this week showed another rise in US commercial oil stockpiles, also adding to concerns about a surplus.
“Bearish sentiment returned to the oil market this week,” said Jens Naervig Pedersen, a strategist at Danske Bank. “While another OPEC+ output hike is the main concern, progress in Iran nuclear talks, and the potential sanctions relief, and lack of progress in trade talks add to market woes.”
A group of eight OPEC+ nations, including its de facto leader Saudi Arabia, will hold a virtual meeting on June 1 to decide on July’s supply levels. A Bloomberg survey of traders and analysts showed most expected another surge.
Source: Bloomberg
