Oil drops, records 5% monthly rise

Oil drilling rigs

Oil prices closed lower on Friday, posting a weekly loss on speculations over a potential OPEC+ production increase. However, they managed to end May with monthly gains, supported by easing trade tensions.

Futures for benchmark Brent crude for July delivery — which expired today — fell by 0.39%, or 25 cents, to $63.90 per barrel, extending their weekly losses to 1.36%, but closing the month with a 4.7% gain.

U.S. West Texas Intermediate (WTI) crude futures for July delivery dropped 0.24%, or 15 cents, to $60.79 per barrel. Despite a weekly loss of 1.2%, WTI posted a monthly gain of 5.5%.

Investors are closely watching a meeting of several OPEC+ member states scheduled for Saturday, amid reports of a potential agreement to accelerate production increases in July.

Meanwhile, the US Energy Information Administration (EIA) reported today that total US production of petroleum liquids rose to a record high of 20.8 million barrels per day in March, up 3.1% from the previous month.

Oil prices also came under pressure from renewed trade tensions between the US and China, following accusations by former President Trump that China violated the truce agreement which had earlier supported positive sentiment in oil markets this month.