(Bloomberg) — Oil headed for a second successive weekly loss as traders weighed signs of a thaw in the US-China trade war and President Donald Trump’s threats toward Iran against the prospect of more supply from the OPEC+ alliance.
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Global benchmark Brent (BZ=F) futures traded near $62 a barrel on Friday after Beijing said it’s assessing the possibility of talks with the US that could ease the tariffs conflict between the two economic giants. West Texas Intermediate (CL=F) held below $60.
As of 7:57:06 AM EDT. Market Open.
Prices drew support earlier from Trump’s pledge to impose secondary sanctions on any nations or companies buying Iranian oil, ratcheting up pressure on Tehran as nuclear talks with Washington hit a snag.
Nonetheless, Brent futures for July remain on track for a weekly loss of more than 6% on concern that the OPEC+ cartel led by Saudi Arabia is poised to push more supplies into an already-fragile world market. The alliance will hold a call on Monday to set policy for June.
OPEC+ has considerable idled capacity to restart, amplifying concerns that global crude supply will exceed demand over 2025. At present, traders broadly expect the group to sign off on another surge, according to a Bloomberg survey. Last month, the cartel agreed to revive three times the originally planned volume.
As of 7:57:06 AM EDT. Market Open.
Crude has shed about 17% this year, briefly touching a four-year low last month as the Trump administration’s bid to rework the global trading system through punitive levies fanned concerns it’ll drag economies into recession, hurting energy demand.
“Crude oil’s attempt to bounce seems to have run into trouble already, highlighting ongoing concerns about the trajectory of global demand spiced up with the Saudis’ willingness to accept lower prices in order to regain market share,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen.
—With assistance from Jake Lloyd-Smith.
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