There were also talks to shift the virtual session of the Organization of the Petroleum Exporting Countries and its allies to Saturday due to scheduling issues, several delegates said. The group will keep adding output until its market share returns to the 28-30% range, leaving markets facing a surplus of as much as 600,000 barrels a day this quarter, according to Bloomberg Intelligence analyst Henik Fung.
Crude has been volatile in recent weeks, roiled by fears that the Israel-Iran war would hamper supply. While markets have since calmed, concerns linger on negotiations with Iran and trade talks over tariffs that could crimp oil demand.The US plans to restart nuclear talks with Iran, and US Middle East envoy Steven Witkoff is set to meet Iran’s Foreign Minister Abbas Araghchi in Oslo next week, Axios reported. Meanwhile, the US took fresh steps to restrict the trade of the Islamic Republic’s oil, keeping up pressure on Tehran — with the Treasury and State departments on Thursday announcing separate sanctions on companies and a “shadow fleet” of vessels.
In Canada, a wildfire emerged in the Fort McMurray area, about 20 kilometers (12 miles) from a major oil sands production site, offering a fresh reminder of the seasonal threat to the country’s supplies. Production from Alberta fell to the lowest in two years in May, combining with falling output from Mexico and a ban on Venezuelan flows to strengthen heavy crude prices.
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