Oil prices are poised for a weekly decline on Friday, weighed down by uncertainty over US-China trade talks and concerns about a potential oversupply in global oil markets.
The international benchmark Brent crude traded at $61.69 per barrel at 1.40 p.m. local time (1040 GMT), marking a decline of around 6.4% from last week's closing price of $65.87.
Similarly, the American benchmark West Texas Intermediate (WTI) was trading at $58.57 per barrel, down approximately 7% from last Friday's closing level of $62.93.
On Monday, April 28, US President Donald Trump claimed that discussions with China were progressing, stating that Chinese President Xi Jinping had called him. However, Beijing denied any contact had taken place. The mixed messaging intensified doubts about a resolution to the long-running trade war.
Prices continued their decline as Beijing reaffirmed that no recent discussions had occurred with Washington, fueling fears that the trade impasse could persist. Rising tariffs up to 145% on Chinese imports by the US and 125% in retaliatory Chinese measures added to concerns that slowing global trade could drag down oil demand.
Additionally, concerns over a potential oversupply in global oil markets weighed further on prices. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are considering accelerating their production hikes in June.
The group, having already raised output by 411,000 barrels per day in May, is expected to reassess its June targets at a meeting on 5 May.
Meanwhile, US crude inventories rose by 3.76 million barrels, according to the American Petroleum Institute, compounding concerns in the world’s largest oil-consuming nation.
Prices hit a four-year low after further drops were triggered by Trump's announcement of new tariffs on 2 April and China's rapid retaliation. Analysts warned that volatility in trade policy rhetoric could prolong global economic uncertainty.
Trump also hinted at renewed pressure on Iran, suggesting that secondary sanctions might be reimposed. The move came as nuclear negotiations with Tehran were delayed, reinforcing fears of reduced Iranian oil exports. His comments came after the postponement of nuclear talks between Washington and Tehran. The US administration has reactivated its 'maximum pressure' campaign aimed at cutting Iran's oil exports to zero.
Expectations that OPEC+ will continue ramping up production remain a key concern. Analysts warn that rising output, coupled with structurally weakening global demand, could create lasting imbalances in the oil market.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr