Intel stock extends gains after report of possible U.S. government stake
Investing.com-- Oil prices fell Friday and were headed for a weekly loss amid heightened uncertainty over U.S. President Donald Trump’s trade tariffs, with focus turning to an upcoming OPEC+ decision on output.
At 09:15 ET (13:15 GMT), Brent oil futures for August fell 0.5% to $63.01 a barrel, while West Texas Intermediate crude futures dropped 0.3% to $60.78 a barrel.
Benchmark prices were set to lose around 2% this week, heading for a second straight week in red, as uncertainty over Trump’s tariffs and their economic impact weighed on the outlook for demand.
Data released earlier Friday pointed to further easing inflationary pressures in the U.S., potentially offering the Federal Reserve room to ease monetary policy once more.
Crude hit by U.S. tariff whipsaw
Oil had gained some ground on Thursday after a federal trade court ruled to block Trump from imposing his planned reciprocal tariffs.
But the ruling was swiftly appealed, with an appeals court reinstating Trump’s tariff plans, at least temporarily, as their legality is considered. Trump lashed out against the trade court on Thursday and expressed hope that the Supreme Court will back his tariff agenda.
Legal sparring over Trump’s tariffs sparked renewed concerns over their economic impact, sparking losses across most risk-driven assets.
Adding to concerns over the trade tariffs, U.S. Treasury Secretary Scott Bessent said that trade talks with China had “stalled,” denting hopes for a more permanent trade deal between Washington and Beijing.
Additionally, Trump on Friday accused China of breaking a recent trade agreement, only a few weeks after the two nations announced a temporary truce aimed at de-escalating tensions.
Traders feared that Trump’s tariffs, if implemented in their full range, will dent economic growth and undermine oil demand.
OPEC+ meeting in focus
Eight members of the Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, are set to meet on Saturday and decide on a potential production hike in July.
The cartel may discuss a larger increase in oil output for July than the 411,000 barrels per day increases it implemented for May and June, according to a Reuters report on Friday.
Eight countries within the OPEC+ alliance have been raising their oil production more quickly than initially planned, despite the fact that this additional supply has put downward pressure on prices.
A statement from Kazakhstan on Thursday, indicating that it has no plans to reduce its oil production, has stirred debate within OPEC+. There’s speculation that Kazakhstan’s stance might influence the discussions towards a larger output increase in the meeting scheduled for Saturday.
Ambar Warrick contributed to this article.