Oil prices fell during Friday’s trading, heading towards recording weekly losses exceeding 2%, amid the increasing pressure resulting from surpluses in the supply and the uncertainty that surrounds the fate of commercial talks between the United States and China.
Brent crude futures decreased by 33 cents to $ 66.22 a barrel, heading to incur a weekly loss of about 2.5%. The US West Texas Intermediate crude fell 31 cents to $ 62.48 a barrel, with expectations for a weekly loss of 3.3%.
“Prices continue to decline as fears of a surplus in the supply by the OPEC Plus alliance, at a time when the demand expectations remain unconfirmed due to the continued commercial tensions,” said the chief analyst at the London Fam Fam, in a statement carried by Reuters. He added: “The rise in the dollar adds more pressure on crude prices.”
Different statements about commercial negotiations
Oil prices lost their gains on Friday after a Chinese Foreign Ministry spokesman denied the existence of ongoing consultations or negotiations with Washington on customs duties, which contradicts the statements of US President Donald Trump, who said Thursday that there are ongoing trade talks.
Surface notifications for companies showed that China decided to exempt some American goods from customs duties by 125%, and asked companies to provide lists of goods that could benefit from the exemption, in a move that reflects Beijing’s increasing concern about the repercussions of the trade war on its economy.
Additional pressure on oil prices
Oil prices fell earlier this month to their lowest levels in four years, after customs duties escalated concerns about global demand and caused broad sales waves in financial markets.
In a related context, Reuters recently reported that several members of the OPEC Plus coalition have proposed accelerating the pace of oil production for the second month in a row starting from June, at a time when the stopping of the Russian war in Ukraine may contribute to the flow of more Russian oil to global markets, which increases pressure on prices.
