OPEC+ signals extension of output cuts amid oil price concerns

Oil prices inched up on Friday as OPEC+ signaled a continuation of output cuts, but both Brent crude and US West Texas Intermediate crude were on track for their steepest weekly losses in three months. Brent crude futures for July rose to $83.82 a barrel, while US WTI crude for June reached $79.11 per barrel.

Investors are concerned about the impact of potential higher interest rates on economic growth in the US and globally, especially with the approaching US driving season. Analysts suggest that high inflation may lead consumers to opt for shorter drives during the holiday period.

The market is closely monitoring US economic data and future crude supply indicators. The recent decision by the US Federal Reserve to maintain interest rates and the easing of geopolitical tensions in the Middle East have contributed to the downward pressure on oil prices.

Brent crude is facing a 6.3 percent weekly decline, while WTI is moving towards a 5.6 percent loss for the week. OPEC+ producers are considering extending their voluntary oil output cuts of 2.2 million barrels per day beyond June if demand does not improve. However, formal talks on this matter are yet to commence ahead of the June 1 meeting.

In conclusion, oil prices are under pressure due to demand uncertainty, potential interest rate hikes, and easing geopolitical tensions. The upcoming OPEC+ meeting will be crucial in determining the future direction of oil output policies and their impact on global markets.