West Texas Intermediate (WTI) crude prices fell over 1% to around $62.00 per barrel on Friday during European trading hours, as investor sentiment weakened amid signs of increased oil supply from OPEC+ and renewed uncertainty over global demand.
WTI futures on the New York Mercantile Exchange (NYMEX) are trading near the lower end of their weekly range. The drop follows reports that OPEC+ is planning a larger-than-expected production hike starting in May. According to Reuters, the group will raise output by 411,000 barrels per day (bpd), triple the initially planned increase of 138,000 bpd.
The expanded output plans reflect internal pressure within OPEC+, particularly from members like Kazakhstan. Kazakh officials say underproducing is damaging their oilfields. On Wednesday, the country’s energy minister told Reuters that Kazakhstan cannot restrict production by independent oil companies operating there. He also said shutting down national oilfields would harm future output.
Adding to the bearish tone, concerns over global oil demand have resurfaced due to conflicting signals from China and the United States. Earlier this week, U.S. President Donald Trump said trade talks with China were going well and expressed confidence in reaching a deal.
However, China refuted those claims on Thursday. A spokesperson for the Chinese Ministry of Commerce said there have been no ongoing economic or trade negotiations with the U.S. The official added that any resumption of talks would require the U.S. to lift all unilateral tariff measures.
The uncertainty around future trade relations between the world’s two largest economies has fueled doubts over near-term oil demand recovery.
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