Oil prices dropped on Friday as traders adjusted their positions ahead of an upcoming OPEC+ meeting and with caution surrounding a potential de-escalation in the U.S.-China trade dispute.
Brent crude futures declined by 56 cents, or 0.9%, to $61.57 per barrel, while U.S. West Texas Intermediate crude futures fell 61 cents, or 1%, to $58.63 per barrel.
For the week, both Brent and WTI were on track to record 7% declines, marking the largest weekly drops in a month.
China’s Commerce Ministry stated that it was “evaluating” a proposal from Washington to engage in talks over U.S. President Donald Trump’s tariffs, raising hopes for a possible easing of the ongoing trade tensions. However, oil markets remain cautious, as the broader trade war between the U.S. and China has raised concerns over global economic growth and oil demand.
Additionally, the situation is complicated by President Trump’s threat to impose secondary sanctions on buyers of Iranian oil, with China being the largest importer of Iranian crude. These developments follow the postponement of U.S. talks with Iran over its nuclear program.
Oil prices had briefly risen late on Thursday, following Trump’s comments, but concerns about a potential increase in OPEC+ output and the broader trade tensions kept prices under pressure.
OPEC+ is preparing for a meeting on May 5 to decide on its output strategy for June. Several members are expected to push for accelerated output increases after the group raised production in April. However, Saudi Arabia has indicated that it may not take additional steps to support oil prices through further supply cuts.
