Oil prices fall on rising supply fears, US-Iran talks
Oil prices ended the week lower as concerns over increased global supply, rising US crude inventories, and renewed US-Iran nuclear negotiations weighed on market sentiment.
Brent crude dropped to $63.85 per barrel on Friday, down 1.7 per cent from last week’s close of $64.93, while West Texas Intermediate (WTI) slipped 1.5 per cent to $60.92 from $61.88.
The decline followed reports that OPEC+ may consider raising output at its June 1 meeting, with one option on the table being an additional 411,000 barrels per day starting in July. Analysts say this signals a shift in the group’s strategy—from propping up prices to protecting market share.
The downward pressure was compounded by a surprise build in US commercial crude stocks, which rose by 1.3 million barrels last week, according to the US Energy Information Administration. The inventory increase has heightened fears of a supply glut amid signs of weakening demand.
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Meanwhile, oil markets were further unsettled by developments in the US-Iran nuclear negotiations, with a fifth round of talks opening in Rome. A potential deal could lead to the easing of sanctions and allow more Iranian crude to return to the global market, fuelling additional oversupply worries.
While the US insists Iran must halt uranium enrichment, Tehran maintains its right to continue enrichment for peaceful purposes. Any breakthrough in the deadlocked talks could significantly alter the supply landscape, adding pressure to an already fragile oil market.
