Brent crude oil futures dipped toward $64 per barrel on Friday, poised for their first weekly decline in three weeks amid growing concerns that OPEC+ may boost production.
Oil to close down the week
The group is reportedly considering a third consecutive monthly increase in output quotas—potentially adding around 411,000 barrels per day (bpd) starting in July—though no formal agreement has yet been reached. This prospect is fueling fears of oversupply, especially after an unexpected rise in US crude inventories earlier this week added to bearish sentiment.
Further adding to market unease, data from The Tank Tiger revealed that US crude storage demand has surged to levels not seen since the height of the COVID-19 pandemic, suggesting that traders are bracing for a possible influx of supply from OPEC+ in the near term. This heightened storage activity signals expectations of abundant oil availability, pressuring prices.
Eyes on Baker Hughes rig count
Investors are also closely monitoring Friday’s Baker Hughes rig count, a key indicator of future US oil and gas production capacity, which will provide further insight into supply dynamics amid shifting market conditions. Meanwhile, geopolitical developments remain a critical focus, as ongoing US-Iran nuclear talks continue to unfold following earlier reports of potential Israeli strikes on Iranian nuclear sites—raising concerns over possible disruptions to Middle Eastern oil supplies.
Overall, the combination of potential OPEC+ production increases, rising US stockpiles, and geopolitical uncertainties is creating a complex backdrop for crude oil markets, driving cautious trading and contributing to the downward pressure on prices heading into the weekend.
