FX.co ★ WTI Oil Falls Ahead of OPEC+ Meeting

West Texas Intermediate (WTI) crude oil futures experienced a 1.6% decline on Friday, closing at $58.29 per barrel and recording their most significant weekly drop since the end of March. This decline occurred as market participants grew cautious ahead of a critical OPEC+ meeting that has been rescheduled to Saturday. During this meeting, member states will deliberate on production targets for June. The group, comprising OPEC and its allies, is considering whether to accelerate production increases or maintain a more conservative strategy amid dampened demand growth forecasts. Persisting concerns about a global economic downturn linked to the US-China trade tensions have further exerted pressure on oil markets. Despite early indications of easing trade conflicts, overall sentiment remained vulnerable. A reduction in the US oil rig count by four, bringing the total to 479, provided slight support by suggesting a potential deceleration in domestic production growth. Additionally, President Trump's threat of imposing secondary sanctions on purchasers of Iranian crude has introduced an element of geopolitical risk.