Oil prices were on track to post a second consecutive weekly decline this Friday (May 30), pressured by expectations of a new production increase by the Organization of the Petroleum Exporting Countries and Allies (OPEC+) in July, as well as renewed uncertainty following the latest legal twist that kept U.S. President Donald Trump’s tariffs in place.
Brent crude futures fell 0.33% to $63.94 per barrel. West Texas Intermediate (WTI), the U.S. benchmark, dropped 0.36% to $60.72 per barrel.
The downward trend has largely been driven by the outlook for increased supply, as investors anticipated another production hike by OPEC+ when eight of its members met on Saturday (May 24). “The stage is set for another significant production boost,” said Robert Rennie, Head of Commodity and Carbon Research at Westpac.
Analysts expect prices to remain within current ranges before dropping to around $50 by the end of the year.
In the U.S., Trump’s tariffs are expected to remain in effect after a federal appeals court temporarily reinstated them on Thursday, reversing a trade court decision made on Wednesday (May 28) that had immediately blocked the broader tariffs.
The temporary block caused oil prices to fall by more than 1% on Thursday, as traders assessed the potential impact. Analysts noted that uncertainty would persist as the tariff disputes continue to play out in the courts.
Oil prices have dropped more than 10% since Trump announced the Liberation Day tariffs on April 2.
Source: Diário Económico
