FX.co ★ Oil Set for Weekly Loss

WTI crude oil futures were hovering around $63 per barrel on Friday, poised for a weekly decline as concerns about oversupply intensified. This was spurred by the potential ceasefire between Russia and Ukraine and the likelihood of increased production from OPEC+. Reports suggested that progress was underway between the US and Russia toward concluding the war, although certain issues remain unresolved. A ceasefire coupled with the reduction of sanctions could lead to an influx of Russian oil into the global market. Meanwhile, several OPEC+ nations are anticipated to advocate for a subsequent month's acceleration in output increases this June. Kazakhstan, a crucial ally, has clarified its position, asserting it cannot decrease production at its significant oil fields and will focus on national interests when determining output levels. Further adding to the pressure, uncertainties in trade relations between China and the US—two of the largest oil consumers globally—continue to cast a bearish outlook on demand. However, partially offsetting some losses, the US introduced new restrictions earlier in the week targeting an influential Iranian figure involved in the shipment of LPG and crude oil.