Oil headed for its first weekly decline in three, as OPEC+ weighed another bumper production increase that could add supplies into a market already expected to face a glut.

Brent fell toward $64 a barrel, declining for a fourth session and bringing its weekly loss to about 2%. West Texas Intermediate was below $61. OPEC and its allies discussed another major output-quota increase of 411,000 barrels a day for July, although no agreement has yet been made, delegates said.

Crude has shed about 14% this year, hitting the lowest since 2021 last month, as OPEC+ loosened supply curbs at a faster-than-expected pace, just as the US-led trade war posed headwinds for demand. Data this week showed another rise in US commercial oil stockpiles, adding to concerns about a surplus.

“Focus is increasingly turning to OPEC+ and what the group decides to do with July output levels,” said Warren Patterson, head of commodities strategy for ING Groep NV. “Another large increase for July would cement a shift in policy — from defending prices to defending market share.”

Elsewhere, the European Commission’s economy chief Valdis Dombrovskis said it would be appropriate to lower the price cap on Russian oil to $50 a barrel. The current $60 cap — a move meant to punish Moscow for its war against Ukraine, yet keep oil flowing — isn’t hurting the producer given lower prices for now, he added.

Prices:

  • Brent for July settlement fell 0.6% to $64.04 a barrel at 8:18 a.m. in Singapore.

  • WTI for July delivery retreated 0.7% to $60.78 a barrel.

. Read more on Markets by NDTV Profit.Brent fell toward $64 a barrel, declining for a fourth session and bringing its weekly loss to about 2%  Read MoreMarkets, Business, Bloomberg 

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