Crude oil prices closed the week in the red, as traders reacted to new signals from OPEC+ and fresh geopolitical developments. Speculation rose that the alliance might increase production in June. Progress in diplomatic talks involving Iran and Russia added further downward pressure.
At the time of writing, West Texas Intermediate (WTI) dropped 0.51%, trading at $62.47 per barrel. Brent crude also fell 0.53%, reaching $66.20 per barrel. These figures confirm a modest but consistent decline throughout the week.
Oil Prices Dip on OPEC+ Production Talks
A Reuters report this week said OPEC+ is considering a larger output boost in its June meeting. The alliance aims to address repeated quota violations by Iraq and Kazakhstan.
Kazakhstan stirred internal tensions. Its energy minister announced that the government would not enforce cuts on independent producers. He also ruled out reducing state-run production due to future output concerns. This stance threatens OPEC+ unity and could lead to internal disputes.
Energy Aspects analysts stated, “Kazakhstan’s position strengthens our view that OPEC+ will likely push a faster output increase by May and possibly extend it through July and the summer.”
Oil Price Pressures Intensify Amid Geopolitical Talks
Russian Foreign Minister Sergey Lavrov told CBS that negotiations with the U.S. over Ukraine showed progress. He said, “We are ready to reach a deal, but some deal elements need fine-tuning.”
Iranian Foreign Minister Abbas Araqchi expressed readiness to resume nuclear talks with European powers. A successful deal might lift U.S. sanctions and allow Iranian oil back into the market. This change would increase global supply and intensify downward price pressure.
Market Outlook: Oil Prices Face Bearish Headwinds
Despite a slight drop, market sentiment remains fragile. A potential OPEC+ production boost and returning Iranian oil could shift the balance.
Traders now watch developments closely ahead of the June meeting. If OPEC+ hikes production and diplomacy succeeds, oil prices may fall further. For now, caution dominates trading floors as volatility looms ahead.
