Oil prices are declining at the end of a volatile week and Brent below $ 62 a barrel

Oil prices fell at the end of a week that witnessed severe fluctuations, as customers balanced the possibility of increasing supplies from the “OPEC+” alliance and the risks of the trade war on demand, in exchange for a new threat to impose US sanctions on Iranian oil exports.

Brent crude decreased to below $ 62 a barrel, heading towards a weekly loss of more than 7%, while the West Texas West Crude settled near 59 dollars.

The Saudi -led coalition is scheduled to meet next Monday to set the supply policy for the month of June, after a report stating that it is possible to agree on a new increase in production.

Penalties on Iran
In the United States, President Donald Trump said he would impose secondary sanctions on any countries or companies that buy Iranian oil, which increases pressure on Tehran after nuclear talks stalled with Washington. This threat led to the rise in oil prices in a session on Thursday.

Oil has lost nearly one -fifth of its value since the beginning of the year, to reach its lowest level in four years, in light of the Trump administration seeking to reshape the global commercial system by imposing customs duties, which raised fears that this would lead to pushing the global economy towards stagnation, and thus harm to demand for energy.

The data issued this week strengthened those concerns, as the numbers showed the contraction of the American economy in the first quarter, as well as a weakness in the Chinese manufacturing sector.

The OPEC+movements to restart the suspended large productive capabilities have strengthened the market fears that the global supply will exceed the demand during the year 2025. According to a poll conducted by Bloomberg, customers expect that the coalition will decide a new increase in production. Earlier last month, “OPEC+” surprised the markets when he agreed to pump 411 thousand barrels per day in May, which represents three times the size planned in the beginning.