02.05.202509:25:00UTC+00Oil Set For Weekly Loss On Demand Concerns

Oil prices edged lower on Friday at the end of a volatile week as traders weighed a potential supply hike from OPEC+ and a fresh threat of U.S. sanctions against Iranian flows.

Benchmark Brent crude futures fell 0.6 percent to $61.79 a barrel in early European trade while WTI crude futures were down 0.4 percent at $58.98.

Brent contracts were down more than 7 percent for the week and WTI contracts were down over 6 percent, marking their biggest weekly declines in a month on concerns that a broader trade war could push the global economy into a recession and dent demand for fuel.

There is some optimism, however, after China said it was open for talks with the United States on tariffs, raising hopes of a de-escalation in a bitter trade war between the two largest economies in the world.

Meanwhile, OPEC's crude production fell last month despite the group's long-awaited plans to increase output, according to a Bloomberg survey. Much of the reduction stemmed from looming U.S. sanctions on Venezuela.

Elsewhere, U.S. President Donald Trump said Thursday any country or person that buys oil or petrochemicals from Iran will not be allowed to do any business with the U.S., ratcheting up pressure on Tehran as nuclear talks with Washington hit a snag.