WTI climbs toward $63.00, remains headed for a weekly loss amid oversupply worries
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WTI prices edge higher but remain poised for a weekly loss, driven by the prospect of increased OPEC+ output.
Several member nations are expected to push for a second straight month of accelerated production hikes in June.
A potential ceasefire and easing of sanctions could increase Russian Oil exports, further weighing on prices.
West Texas Intermediate (WTI) Oil price extends its gains for a second straight day, trading around $62.80 during Friday's Asian session. Despite the uptick, prices remain on course for a weekly decline due to mounting oversupply concerns fueled by the potential for increased OPEC+, the Organization of the Petroleum Exporting Countries and its allies, output.
Several OPEC+ nations are expected to advocate for a second consecutive month of accelerated production hikes in June. Kazakhstan, a key member, has stated it cannot reduce output at its major oil fields and will prioritize national interests when determining production levels.
Meanwhile, Iranian Foreign Minister Abbas Araqchi expressed willingness on Thursday to travel to Europe for discussions on Tehran's nuclear program. Progress in negotiations with Europe and the US could lead to the lifting of sanctions on Iranian Oil exports.
A potential ceasefire and easing of sanctions could also boost Russian Oil exports, adding downward pressure on prices. Russian Foreign Minister Sergey Lavrov noted that talks with the US are progressing toward ending the war in Ukraine, though some key issues remain unresolved. However, US President Donald Trump criticized Vladimir Putin on Thursday following Russia's overnight missile and drone attacks on Kyiv, urging, “Vladimir, STOP!”
Adding to the bearish sentiment, the demand outlook remains weak amid ongoing US-China trade tensions. The world’s two largest Oil consumers are locked in a prolonged trade dispute, leading to higher business costs, downgraded financial forecasts, and disruptions in global supply chains—factors that have raised fears of a global economic slowdown that could dampen Oil demand.
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