By Stephanie Kelly
(Reuters) – Oil prices edged higher on Friday but were on track for a weekly loss as a potential OPEC+ output increase and a possible ceasefire in the Russia-Ukraine war may raise supply at the same time conflicting U.S. tariff signals limit the demand outlook.
Brent crude futures gained 5 cents to $66.60 a barrel by 0001 GMT, on track to fall 2% for the week.
U.S. West Texas Intermediate (WTI) crude rose 6 cents to $62.85 a barrel but was set to decline 2.9% for the week.
The United States and Russia are moving in the right direction to end the war in Ukraine, but some specific elements of a deal remain to be agreed, Russian Foreign Minister Sergey Lavrov said in an interview with CBS News.
A halt to Russia’s war in Ukraine and the easing of sanctions against them could allow more Russian oil to flow to global markets. Russia, a member of the OPEC+ group that includes the Organization of Petroleum Exporting Countries, is one of the world’s biggest oil producers along with the U.S. and Saudi Arabia.
On Thursday, Trump criticized Russian President Vladimir Putin after Russia pounded Kyiv with missiles and drones overnight, saying “Vladimir, STOP!”
Also potentially adding to global supply, several OPEC+ members had suggested the group accelerate oil output increases for a second month in June, Reuters reported earlier this week.
And Iranian Foreign Minister Abbas Araqchi said on Thursday he was ready to travel to Europe for talks on Tehran’s nuclear program.
Successful talks with Europe and the U.S. would likely result in the lifting of sanctions on Iranian oil exports. Iran is the third-biggest oil producer in OPEC behind Saudi Arabia and Iraq.
Still the demand outlook remains cloudy amid the trade war between China and the U.S., the world’s two largest oil consumers.
Businesses are increasing prices and cutting financial guidance due to higher costs stemming from the trade war, which has also roiled global supply chains and has prompted concerns of a global economic slowdown that could hit oil demand.
(Reporting by Stephanie Kelly; Editing by Christian Schmollinger)
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