Oil on track for second weekly decline amid expectations of another OPEC+ output hike

Reuters reports that oil prices are set for the second weekly decline amid expectations of another OPEC+ production hike in July and renewed global trade uncertainty. So far this week, both Brent and WTI have fallen 1.3%, the news agency says. 

The decline in crude prices is mostly driven by prospects of rising supply. Analysts at Westpac believe the OPEC+ output hike may exceed 411,000 barrels per day. Additionally, the global oil surplus has widened to 2.2 million barrels per day. In this regard, JPMorgan expects prices to remain in the current range and fall below $60 by year-end. 

Meanwhile, a US federal appeals court has paused the block on President Donald Trump’s import tariffs. This decision has renewed uncertainty, which is likely to remain until there is a final court order, according to analysts. 

Global trade tensions continue to cloud the outlook for oil demand. As of May 28, the world’s crude consumption increased by about 400,000 barrels per day from a month earlier, with analysts having forecast a rise by 650,000 barrels per day.