FX.co ★ Oil Reverses Third Weekly Gain on OPEC+ Supply Boost

West Texas Intermediate (WTI) crude oil futures experienced a slight uptick of 0.5%, closing at $61.50 per barrel on Friday. However, despite this increase, the market faced its first weekly decline in three weeks. This was largely due to anticipations of an additional production boost from OPEC+. The organization is projected to augment production by 411,000 barrels per day starting in July, with discussions anticipated next week to finalize this decision. Market sentiment was further dampened by reports indicating that OPEC+ may eliminate its remaining voluntary cuts of 2.2 million barrels per day by October. Contributing to the negative outlook were reports of a significant build-up in U.S. crude inventories and a spike in storage demand domestically. Conversely, geopolitical dynamics, such as reports of Israel potentially preparing to target Iranian nuclear facilities and the imposition of new sanctions on Russian oil, provided some level of support to the market. Attention is also focused on the U.S.-Iran nuclear discussions in Rome, which could have implications for the outlook on Iranian oil supply. By the end of the week, the benchmark saw a decline of over 1%.