Oil on track for weekly losses on expectations of more global supply

Reuters reports that oil gained on Friday, but is set for a weekly loss. The decline in prices is driven by the expectations of a rise in global supply. For this week, Brent is on track to fall 2%, while WTI is set to lose 2.9%. 

The potential de-escalation of geopolitical tensions in Eastern Europe and the lifting of restrictions on Russia will allow more of the country's crude to flow to international markets. Russia is one of the world’s leading oil producers along with Saudi Arabia and the US, Reuters notes. 

The news agency also reports on the proposal of several OPEC+ countries to extend the hike in crude output for a second month in June.

Additionally, Iranian Foreign Minister Abbas Araqchi said he was ready to go to Europe to hold talks with the United States. Successful negotiations are likely to result in the lifting of restrictions on Iranian crude exports.

Yet, the oil demand outlook remains cloudy amid the trade confrontation between the US and China, the world’s biggest oil consumers, Reuters adds.