FX.co ★ Oil Heads for Weekly Decline

On Friday, West Texas Intermediate (WTI) crude oil futures dipped below $61 per barrel, marking its first weekly decline in three weeks. This downward trend is driven by the possibility of OPEC+ increasing crude production. The group is reportedly considering a third consecutive monthly rise in output quotas, with a potential addition of 411,000 barrels per day in July, although no final agreement has been reached. This development amplifies existing concerns of oversupply, especially following an unexpected increase in U.S. crude inventories earlier in the week. Data from The Tank Tiger indicated a surge in U.S. crude storage demand, reaching levels not seen since the COVID-19 pandemic, as traders brace for a possible wave of supply from OPEC+ in the forthcoming months. Investors are keenly observing the Baker Hughes rig count, an important indicator of future U.S. oil and gas production, while also monitoring U.S.-Iran nuclear negotiations. Earlier reports regarding potential Israeli strikes on Iranian nuclear sites have heightened fears of disruptions to regional supply.