Oil prices fell slightly in Asian trade on Friday with focus squarely on an upcoming OPEC+ meeting for more cues on production, while further losses in crude were stemmed by more U.S. sanctions on Iran.
Brent oil futures for September fell 0.2% to $68.66 a barrel, while West Texas Intermediate crude futures fell 0.2% to $65.51 a barrel by 21:51 ET (01:51 GMT).
Both contracts were up between 1% to 2% this week, but were nursing double-digit losses from the prior week.
Oil was pressured by some overnight strength in the dollar, following stronger-than-expected nonfarm payrolls data that spurred bets that interest rates will not fall in the near-term.
But markets remained on edge over the U.S. economy after a controversial tax and spending bill was approved by the House of Representatives. U.S. trade tariffs are also in focus before a July 9 deadline for Washington to impose steep duties on major U.S. trading partners.
OPEC+ production hike in focus
The Organization of Petroleum Exporting Countries and allies (OPEC+) is set to meet over the weekend. Recent reports showed the cartel is gearing up to once again hike production by 411,000 barrels a day in August, following similar hikes in the past three months.
The production hikes come as the OPEC+ scales back two years of sharp production cuts, in part to offset the economic impact of persistently low oil prices.
The OPEC+, led by top exporter Saudi Arabia, is also seeking to punish overproduction within its ranks.
The OPEC+ hikes show the cartel falling in line with demands from U.S. President Donald Trump to increase production and stem any rises in oil prices. While oil had risen close to 2025 highs in June, amid the Israel-Iran war, a deescalation in military action saw crude crash back below $70 a barrel.
US imposes more sanctions on Iranian oil
The U.S. on Thursday imposed sanctions targeting a network of companies and ships that smuggles Iranian oil disguised as Iraqi oil.
The new sanctions targeted a network of companies run by Iraqi-British national Salim Ahmed Said, the U.S. Treasury Department said, and are aimed at limiting Iran’s oil revenues and pressure the country into accepting more limits on its nuclear activities.
Iran had earlier this week ceased cooperation with the United Nations nuclear watchdog, after the U.S. attacked three of the country’s main uranium enrichment facilities in late-June.
Still, Tehran and Washington are set to hold more nuclear talks in Oslo next week, Axios reported.
Source: Investing