Crude Oil Prices End the Week Negative
Oil prices are on track for a second consecutive weekly decline amid expectations that the eight-member OPEC+ group will move forward with further production hikes at their meeting on Saturday.
The international benchmark Brent crude was trading at $62.54 per barrel on Friday, marking a fall of around 2.96% from last week’s closing price of $64.45. Similarly, the American benchmark West Texas Intermediate (WTI) traded at $60.57 per barrel, down approximately 1.62% from last Friday’s close of $61.57.
Prices started the week on a positive note with US President Donald Trump’s decision to postpone steep tariffs on the European Union (EU).
The White House confirmed that Trump, after a phone call with European Commission President Ursula von der Leyen, delayed the implementation of a 50% tariff on EU imports until July 9. The decision supported global oil prices by boosting economic sentiment and reinforcing expectations of stronger energy demand.
Over the week, prices were heightened by geopolitical risks stemming from intensified situation in Ukraine. The conflict elevated market risk premiums and exacerbated supply concerns. Markets remained alert to the possibility of fresh US sanctions targeting Russian oil exports. Trump warned Tuesday that Russian President Vladimir Putin is “playing with fire” amid continued Russian strikes in Ukraine.
Meanwhile, Russian Foreign Minister Sergey Lavrov said Wednesday that Moscow plans to announce a new round of negotiations with Ukraine “in the very near future.” The last round of direct talks, mediated by Türkiye, was held in Istanbul on May 16.
However, gains were capped by expectations that the eight-member coalition of the OPEC+ group—including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—would proceed with further production hikes at their meeting on Saturday.
The group, which began gradually unwinding 2.2 million barrels per day (bpd) of voluntary cuts in April, increased production by 411,000 bpd in May and announced a similar hike for June. Possibility of July output hike has deepened market fears of a potential supply surplus amid lingering concerns over weak demand.
In a separate development, reports that the US government had barred Chevron from producing and exporting oil in Venezuela put upward pressure on prices.
International outlets reported late Tuesday that Washington granted Chevron a restricted license, allowing only infrastructure and equipment maintenance. The company’s previous license, which permitted oil production and exports, expired on Tuesday.
Oil prices received an additional boost late Wednesday after a US court blocked President Trump from unilaterally imposing broad global tariffs. The US Court of International Trade ruled that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by implementing the so-called “Liberation Day” tariffs on April 2 without Congressional approval.
However, the White House appealed the decision, arguing that it harmed the government’s diplomacy and interfered with the president’s authority. The appeals court decided to temporarily suspend the implementation of the Court of International Trade’s decision.
These developments introduced new uncertainty into Trump’s tariff agenda ahead of the early-July enforcement deadline.
Meanwhile, according to data released late Thursday by the US Energy Information Administration (EIA), US commercial crude oil inventories fell by approximately 2.8 million barrels in the week ending May 23. This was in stark contrast to market expectations of a 1 million barrel increase.
Gasoline inventories also declined by around 2.4 million barrels over the same period, signaling robust demand in the US—the world’s largest oil consumer. #Crude Oil Prices End the Week Negative NGX Index Hits Fresh High as NB, Dangote Sugar, MTN Rally
