Oil prices increased on Friday, supported by data showing an unexpected drop in US crude stockpiles, however, gains were capped by expectations of a potential production hike from the OPEC+ group in July and uncertainty stemming from a court ruling that upheld tariffs imposed by US President Donald Trump.
International benchmark Brent crude increased by around 0.5%, trading at $63.56 per barrel at 11.34 am local time (0834 GMT), up from $63.26 at the previous session's close.
Similarly, US benchmark West Texas Intermediate (WTI) rose by about 0.6%, reaching $60.92 per barrel, compared to $60.57 in the prior session.
According to data released late Thursday by the US Energy Information Administration (EIA), US commercial crude oil inventories fell by approximately 2.8 million barrels to 440.4 million barrels in the week ending May 23. This was in stark contrast to market expectations of a 1 million barrel increase.
Gasoline inventories also declined by around 2.4 million barrels to 223.1 million barrels over the same period, signaling robust demand in the US—the world's largest oil consumer.
Despite strong demand signals, expectations that eight members of the OPEC+ alliance may announce a new production hike at their meeting on Saturday limited further price increases.
Analysts note that the groundwork has already been laid for such a move and suggest that the new increase could surpass the previously agreed daily hike of 411,000 barrels from the last two meetings.
Meanwhile, in the US, a court on Thursday reinstated Trump's tariffs, reversing a decision made a day earlier by the US Court of International Trade that had blocked the broad-based measures.
The initial ruling had triggered a more than 1% drop in oil prices. Since Trump announced the so-called "Independence Day" tariffs on April 2, oil prices have declined by over 10%.
As investors digest the implications of the court's decision, analysts warn that market uncertainty driven by the ongoing tariff dispute is likely to persist.
On the demand side, recession fears fueled by the trade war are weighing on the global economic outlook.
In addition to heightened US-China tensions, Washington has imposed new restrictions requiring many companies to obtain licenses to export certain goods to China, while also revoking existing licenses for specific suppliers.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr