Oil prices edged lower on Friday amid a stronger U.S. dollar and renewed concerns over potential supply increases by OPEC+, putting pressure on global energy markets.
Brent crude futures declined by 37 cents to $64.07 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 39 cents to $60.81 per barrel as of 0015 GMT.
On a weekly basis, Brent recorded a 2% drop and WTI slipped by 2.7%, reflecting a broader pullback in energy markets.
The U.S. dollar strengthened following the House of Representatives’ approval of President Donald Trump’s tax and spending bill. A stronger dollar typically exerts downward pressure on oil prices, making crude more expensive for non-dollar buyers.
Market sentiment was further dampened by a Bloomberg report suggesting that OPEC+ is considering a fresh output hike of 411,000 barrels per day (bpd) for July. While discussions are ongoing, no final decision has been announced ahead of the group’s June 1 meeting.
Earlier reports from Reuters also indicated that OPEC+ may accelerate planned output increases, raising concerns about oversupply in the second half of the year.
Additional pressure came from a recent surge in U.S. crude inventories, which have grown to levels seen during the COVID-19 lockdowns, according to storage broker The Tank Tiger. This uptick in storage demand signals anticipation of further global supply expansion.
Investors are now closely watching the Baker Hughes U.S. oil and gas rig count, a key barometer of future production trends, due later today.
