Oil prices fell on Friday morning, putting them on track for a weekly loss, as investors eyed the prospect of an increase in supply and US-Iran nuclear deal talks, which are reportedly set to resume on Friday.
Brent crude futures (BZ=F) were down 0.5% to $64.11 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) declined 0.6% at $60.85 a barrel.
The fall in oil prices came after Bloomberg reported on Thursday that members of the Organization of the Petroleum Exporting Countries and their allies – known as OPEC+ – were discussing making a third consecutive increase in output, with a decision set to be made at the group's meeting on 1 June.
“Traders are bracing for a potential supply wave from OPEC+ producing nations and although a final agreement has yet to be reached, the group is said to be mulling over another 411,000 barrel per day increase in output for July,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
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A spokesperson for OPEC had not responded to Yahoo Finance UK‘s request for comment at the time of writing.
Meanwhile, the US and Iran are set to resume talks in Rome on Friday, according to a number of reports, to discuss the future of Tehran's nuclear programme. Washington is aiming to limit Tehran's nuclear programme, with US president Donald Trump having revived sanctions on Iran to restrict its crude oil exports.
An agreement between the two countries could could pave the way for more barrels being released. The prospect of an increase in supply into the oil market comes amid lingering concerns about demand. Trump's trade war has prompted fears of a global economic slowdown, with concerns that this could weigh on demand for fuel.
Gold prices rose on Friday, as concerns about mounting US debt rattled investors, driving them to the precious metal which is considered a safe-haven investment.
Gold futures (GC=F) were up 1% at $3,329.70 per ounce at the time of writing, while the spot gold price climbed nearly 1% to $3,326.52 per ounce.
The US House of Representatives narrowly passed Trump's massive tax-cut and spending bill on Thursday, with it now moving onto the Senate, which will be able to make changes or approve the legislation.
There are concerns that the tax cuts and spending proposed in the bill will add to the US debt pile. The Congressional Budget Office said in analysis on Tuesday that the proposals could add $3.8tn to the US federal deficit over the next decade.
