Oil prices edged up on Friday on the prospect of OPEC+ continuing output cuts, but the crude benchmarks were headed for the steepest weekly losses in three months on demand uncertainty and easing tensions in the Middle East reducing supply risks.
Brent crude futures for July rose 24 cents to $83.91 a barrel by 0514 GMT. U.S. West Texas Intermediate crude for June was up 19 cents, or 0.3%, to $79.19 per barrel.
Still, both benchmarks were on track for weekly losses as investors worried about the prospect of higher-for-longer interest rates curbing growth in the U.S., the top global oil consumer, and in other parts of the world.
“With the US driving season almost upon us, high inflation may see consumers opt for shorter drives over the holiday period,” analysts at ANZ Research said in a note on Friday.
The market is now looking towards U.S. economic data and indicators of future crude supply from the world’s top producer. The U.S. Federal Reserve held interest rates steady this week, and flagged recent disappointingly high inflation readings that could make rate cuts take a while in coming. Geopolitical risk premiums due to the Israel-Hamas war, which had kept prices high due to global supply risks, are also fading.
