Oil Prices Show Slight Increase but Headed for Weekly Loss

Oil prices saw a slight gain on Friday; however, they are still poised for a weekly decrease. This is due to possible increase in OPEC+ output and a potential cessation of hostilities in the Russia-Ukraine conflict, which could increase supply. At the same time, conflicting signals from the U.S. regarding tariffs are limiting the demand forecast.

Brent crude futures increased by 5 cents to $66.60 per barrel as of 0001 GMT, but are expected to decline by 2% for the week.

U.S. West Texas Intermediate (WTI) crude experienced a rise of 6 cents, reaching $62.85 a barrel, but is projected to fall by 2.9% this week.

Russian Foreign Minister Sergey Lavrov mentioned in a CBS News interview that the United States and Russia are making positive progress toward ending the conflict in Ukraine, though some specifics of an agreement still need resolution.

Halting the Russia-Ukraine war and easing sanctions on Russia could lead to a greater flow of Russian oil into global markets.

Russia is a prominent global oil producer and a member of OPEC+, which includes the Organization of Petroleum Exporting Countries, along with the U.S. and Saudi Arabia.

On Thursday, Trump voiced criticism of Russian President Vladimir Putin, following overnight missile and drone strikes on Kyiv, urging “Vladimir, STOP!”

Potentially adding to the global supply, certain OPEC+ members have suggested accelerating oil output increases for June, as reported earlier this week.

Iranian Foreign Minister Abbas Araqchi indicated on Thursday his readiness to travel to Europe for discussions regarding Tehran’s nuclear program.

Oil Regains Ground After Previous Drop

Progress in discussions with Europe and the U.S. could lead to the removal of sanctions on Iranian oil exports. Iran holds the position of the third-largest oil producer within OPEC, following Saudi Arabia and Iraq.

The demand outlook remains uncertain due to the ongoing trade tensions between China and the U.S., which are the world’s leading oil consumers.

Businesses are increasing prices and reducing financial forecasts because of higher costs resulting from the trade war. This situation has disrupted global supply chains and raised concerns about a potential global economic slowdown, which could negatively impact oil demand.