Oil Prices Inch Up but Face Weekly Loss on OPEC+, Geopolitical Developments

Oil prices edged higher early Friday but remained on track for a weekly decline amid rising supply prospects and mixed signals on global demand. Brent crude futures rose 5 cents to $66.60 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed 6 cents to $62.85. Both benchmarks are set for weekly losses of 2% and 2.9%, respectively.

Potential supply increases are weighing on sentiment. OPEC+ members, including top producers Russia and Saudi Arabia, have proposed accelerating output hikes for a second month in June. Meanwhile, Russian Foreign Minister Sergey Lavrov signaled progress toward a ceasefire in Ukraine, stating that talks with the U.S. were “moving in the right direction,” though key issues remain unresolved. A resolution could ease sanctions and boost Russian oil exports.

U.S. President Donald Trump also addressed the conflict, sharply criticizing Russia after missile and drone attacks on Kyiv, urging President Vladimir Putin to "STOP!"

Adding further to supply pressures, Iranian Foreign Minister Abbas Araqchi expressed readiness for renewed nuclear talks with Europe. Successful negotiations may lead to the lifting of sanctions on Iran’s oil exports. Iran ranks as OPEC’s third-largest producer.

Despite these developments, global demand remains uncertain. The ongoing trade conflict between the U.S. and China—world’s largest oil consumers—is disrupting supply chains and driving up business costs, prompting fears of a broader economic slowdown. These concerns continue to overshadow gains and cloud the outlook for energy demand.

While oil prices saw a slight uptick, the market remains cautious amid geopolitical volatility and conflicting economic signals. Traders are closely watching developments in Ukraine, OPEC+ decisions, and U.S.-China trade tensions for clearer direction.