Oil prices recorded a weekly decline as concerns over oversupply and ongoing uncertainty surrounding trade talks between the United States and China continued to weigh on investor sentiment.
Brent crude oil, against which Nigerian oil is priced, dropped 2 cents to $66.53 a barrel as of 09:14 Nigerian time, while the US West Texas Intermediate (WTI) crude edged up by 2 cents to $62.81 a barrel but still posted a 3 percent loss over the same period.
Market analysts cited persistent concerns about increasing output from OPEC+ and a lack of clarity in global trade policy as major drivers of the weekly downturn.
“On a weekly basis, prices are down as concerns over oversupply from OPEC+ persist while the demand outlook remains uncertain amid ongoing trade tensions. A stronger US dollar has also added pressure to crude prices,” said Anh Pham senior analyst at LSEG.
Oil markets initially posted gains earlier in the week but reversed direction following conflicting signals from Washington and Beijing.
A spokesperson from China’s foreign ministry stated that there were no ongoing consultations or negotiations on tariffs, contradicting comments made by US President Donald Trump, who claimed trade discussions were underway.
In a bid to mitigate the domestic economic impact, China is reportedly considering exemptions for certain US imports from its existing 125 percent tariff rate.
Beijing has also requested that businesses submit lists of goods potentially eligible for exemption in what is being interpreted as a sign of growing concern over the trade war’s effect on the Chinese economy.
The tariff escalation began after President Trump announced additional levies on Chinese products which prompted retaliatory measures from Beijing.
The tit-for-tat tariffs have stoked fears of a slowdown in global demand and triggered significant volatility in financial and commodity markets.
Several OPEC+ member countries have reportedly suggested an acceleration in oil output increases for the second consecutive month in June.
Russian Foreign Minister Sergey Lavrov indicated that the United States and Russia are progressing toward a resolution but key elements of a potential deal remain unresolved.
A possible halt in the conflict and relaxation of sanctions could allow more Russian crude to reach international markets, increasing global supply levels.
Russia remains one of the world’s top oil producers alongside the United States and Saudi Arabia. It is also a key member of the OPEC+ alliance which coordinates production among major oil-exporting nations.
Despite recent gains in global energy demand, the combined weight of oversupply risks, uncertain trade negotiations and potential geopolitical shifts continues to undermine price stability in the oil market.
Industry players will be looking to upcoming OPEC+ meetings and diplomatic developments for clearer direction.
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