Oil holds steady but heads for second weekly loss

Oil prices remained steady on Friday but were set for a second straight weekly loss as markets assessed the possibility of a larger OPEC+ output increase in July and ongoing uncertainty surrounding U.S. trade policy.

Brent crude futures dropped 18 cents, or 0.28 percent, to $63.97 a barrel, while U.S. West Texas Intermediate crude declined by the same margin to $60.76.

The July Brent contract, which expires today, hovered near session lows. The more actively traded August contract traded 33 cents lower at $63.02 per barrel. Both front-month contracts were heading for weekly losses of over one percent.

Prices turned negative after reports suggested that OPEC+ might consider raising output for July by more than the 411,000 barrels per day added in May and June. A wider global supply surplus, now estimated at 2.2 million barrels per day, is also adding pressure on prices, potentially requiring adjustments to restore balance in the market.

Oil has dropped more than 10 percent since early April following new U.S. tariffs. A federal appeals court on Thursday temporarily reinstated those tariffs after a lower court blocked them a day earlier, introducing fresh uncertainty for trade flows.

The court decision pushed Brent crude to the lower end of its recent range. Additional downward pressure came from new U.S. data showing a slowdown in consumer spending in April, suggesting a possible cooling in demand.