Brent crude prices are slated for over a 1% weekly loss on Friday with the protracted U.S.-China trade war and with investor anticipation of an extended supply cut decision at OPEC's much-anticipated meeting next week.
International benchmark Brent crude was trading at $62.88 per barrel at 1230 GMT on Friday, after opening at $63.60 a barrel on Monday, reflecting a potential 1.13% weekly loss.
American benchmark West Texas Intermediate was trading at $58.02 a barrel at the same time, after beginning the week at $57.92 per barrel, leaning towards a 0.12% weekly gain.
After U.S. President Donald Trump signed two bills into law on Wednesday in support of protestors in Hong Kong against Beijing, Chinese Ministry of Foreign Affairs responded early Thursday by saying Washington has "a sinister intention and hegemonic nature."
The recent tension added another layer to the tense relationship between the U.S. and China, and December will mark the 20th month of the trade impasse between the world's two largest economies.
The ongoing trade war threatens the global economic outlook and overall oil demand next year, while creating a downward pressure on oil prices.
On the supply side, the U.S.' crude oil production hit a fresh record high and added to the supply glut in the global oil market.
The world's largest crude oil producer saw its crude output reaching a new all-time highest level of 12.9 million barrels per day (bpd) for the week ending Nov. 22, according to the country's Energy Information Administration (EIA) data released Wednesday.
In order to preserve its market share against U.S. shale, at next week's meeting, OPEC is expected to maintain the collective oil production cut until mid-2020.
The organization and its allies, dubbed as OPEC+, agreed in December 2018 to lower their collective output by 1.2 million bpd until June 2019, and then later extended this until the end of March 2020.
By Ovunc Kutlu