FX.co ★ Oil Falls for Second Week on Trade Tensions Ahead of OPEC Meeting

WTI crude oil futures fell over 1%, closing at $60.3 per barrel on Friday. This decline marks the second consecutive weekly loss for crude, primarily driven by escalating trade tensions as the OPEC+ meeting approaches. President Trump's accusations against China for allegedly breaching a recent trade agreement aimed at easing tariffs, despite the lack of specific details, have heightened fears of renewed hostilities between the world's two largest economies. Simultaneously, attention shifts to the OPEC+ meeting scheduled for Saturday, where the group will determine production levels for July. Sources indicate that the coalition might consider increasing output beyond the previously planned 411,000 barrels per day. This potential adjustment comes as leading members like Saudi Arabia and Russia aim to reclaim market share and penalize those members who have surpassed their production quotas. Kazakhstan's resistance to curtailing its output further complicates discussions and could propel the group towards approving a more substantial supply increment. The prospect of increased production has already exerted downward pressure on prices, sparking concerns about an impending oversupply in the months ahead.