Oil prices rose slightly on Friday but were still on track for a weekly loss, as potential increases in supply from OPEC+ and a possible ceasefire in the Russia-Ukraine conflict could counterbalance uncertain demand prospects amid trade tensions.
Brent crude futures gained 5 cents, reaching $66.60 per barrel, though they were on track to fall by 2% for the week. U.S. West Texas Intermediate (WTI) crude rose 6 cents to $62.85 per barrel but was set to decline by 2.9% for the week.
Ongoing talks between the United States and Russia regarding the Ukraine war showed signs of progress, with a potential halt in the conflict possibly leading to more Russian oil returning to global markets. Russia, a major oil producer, is part of the OPEC+ group, which includes other key producers like Saudi Arabia.
Additionally, some OPEC+ members have suggested increasing oil output in June, which could further raise global supply. Iran’s willingness to engage in talks over its nuclear program also raised the possibility of sanctions being lifted, potentially allowing more Iranian oil to flow to the market.
However, the demand outlook remains uncertain due to the ongoing trade war between China and the U.S., the world’s two largest oil consumers. The trade tensions have led to higher costs, reduced financial guidance for businesses, and concerns about a global economic slowdown, which could negatively impact oil demand.
