FX.co ★ Brent Crude Oil Drops for 2nd Week

On Friday, Brent crude oil futures experienced a decline of over 1%, settling at $63.5 per barrel. This drop contributes to a second consecutive week of losses as escalating trade tensions overshadow the upcoming OPEC+ meeting. President Trump's remarks accusing China of violating a recent trade agreement intended to ease tariffs have reignited concerns without providing specific details, sparking apprehension over potential renewed trade conflicts between the world's two largest economies. Attention now shifts to the OPEC+ assembly scheduled for Saturday, where decisions on July's output levels will be made. Insiders suggest the group might opt for an increase in production exceeding the initially planned 411,000 barrels per day. This move, driven by major participants like Saudi Arabia and Russia, aims to recapture market share and discipline members who have exceeded production quotas. Kazakhstan's refusal to reduce its output has further complicated matters, possibly prompting OPEC+ to consider a larger supply increase. The prospect of heightened production is already exerting downward pressure on prices, sparking worries about a potential supply glut in the forthcoming months.