Oil prices edged lower in Friday’s Asian trading session as markets awaited signals from the upcoming OPEC+ meeting, while new U.S. sanctions on Iran helped limit further declines.
Brent crude for September delivery dipped 0.2% to $68.66 a barrel, while WTI futures fell to $65.51, also down 0.2%. Despite this slight pullback, both benchmarks are still up 1–2% on the week, though they continue to recover from sharp losses seen the previous week.
A stronger U.S. dollar, driven by upbeat nonfarm payrolls data, exerted pressure on oil, as expectations for near-term rate cuts diminished. Investor anxiety also lingered over the U.S. economic outlook, following the House’s approval of a divisive tax-and-spending bill and looming tariff decisions due by July 9.
OPEC+ Eyes Fresh Output Increase
Attention now turns to the weekend’s OPEC+ meeting, where the alliance is reportedly considering another output increase of 411,000 barrels per day for August. This would mark the fourth consecutive monthly hike, as the group continues unwinding production cuts implemented during the oil market downturn.
Led by Saudi Arabia, OPEC+ is also taking steps to penalize members that exceed their quotas, reinforcing internal discipline. The moves align with Washington’s ongoing push for higher output to contain energy prices. Crude briefly rallied to 2025 highs in June during the Israel-Iran conflict but has since retreated below $70 amid easing geopolitical tensions.
U.S. Tightens Grip on Iranian Oil Trade
In a separate development, the U.S. Treasury announced fresh sanctions targeting a smuggling network linked to Iranian oil exports. The group, led by Iraqi-British national Salim Ahmed Said, allegedly funneled Iranian oil under the guise of Iraqi origin.
These sanctions are designed to cut off Iran’s oil revenues and pressure Tehran over its nuclear program. Tensions escalated after the U.S. struck several Iranian nuclear sites in late June, prompting Iran to halt cooperation with the UN’s atomic watchdog. Nevertheless, diplomatic engagement continues, with new nuclear talks scheduled in Oslo next week, according to Axios.
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