Oil prices lower ahead of OPEC+ meeting; Iran supply in focus

Investing.com-- Oil prices fell Friday with focus squarely on an upcoming OPEC+ meeting for more cues on production, while Iran reaffirmed its commitment to nuclear non-proliferation. 

At 06:00 ET (10:00 GMT), Brent oil futures for September fell 1.2% to $68.02 a barrel, and West Texas Intermediate crude futures fell 1% to $66.30 a barrel. 

Both contracts were up between 1% to 2% this week, but were nursing double-digit losses from the prior week. Trade was thinned by the U.S. Independence Day holiday.

OPEC+ production hike in focus

The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, is set to meet over the weekend. Recent reports indicated the cartel is gearing up to once again hike production by 411,000 barrels a day in August, following similar hikes in the past three months. 

The production hikes come as the OPEC+ scales back two years of sharp production cuts, in part to offset the economic impact of persistently low oil prices.

"These larger supply increases should leave the global oil market well supplied for the remainder of the year. It’s set to return to a large surplus in the fourth quarter of this year. Clearly, recent price action suggests the market is mostly focused on this supply.," said analysts at ING, in a note. 

The OPEC+ hikes show the cartel falling in line with demands from U.S. President Donald Trump to increase production and stem any rises in oil prices. While oil had risen close to 2025 highs in June, amid the Israel-Iran war, a deescalation in military action saw crude crash back below $70 a barrel. 

U.S. imposes more sanctions on Iranian oil 

The U.S. on Thursday imposed sanctions targeting a network of companies and ships that smuggles Iranian oil disguised as Iraqi oil. 

The new sanctions targeted a network of companies run by Iraqi-British national Salim Ahmed Said, the U.S. Treasury Department said, and are aimed at limiting Iran’s oil revenues and pressure the country into accepting more limits on its nuclear activities.

Iran had earlier this week ceased cooperation with the United Nations nuclear watchdog, after the U.S. attacked three of the country’s main uranium enrichment facilities in late-June. 

Still, Tehran and Washington are set to hold more nuclear talks in Oslo next week, Axios reported, while Iran Foreign Minister Abbas Araqchi said Tehran remains committed to the nuclear Non-Proliferation Treaty.

Ambar Warrick contributed to this article