Oil prices on Friday fell after Saudi Arabia and other OPEC+ states agreed to bring forward oil production rises to offset Russian output losses because of Western sanctions.
The downside, however, remained capped by signs of tight global supply and expectations of increased demand as China eases its COVID-19 restrictions.
Benchmark Brent crude futures dropped by 0.7 per cent to 116.75 dollars a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down by 0.8 per cent at 115.92 dollars.
The oil exporters’ cartel said it would increase supply by 648,000 barrels per day in July and August, 200,000 barrels per day more than scheduled under a supply agreement with other producers, including Russia, known as OPEC+.
However, the planned production increase came at a time when the demand outlook is clouded by many uncertainties.
Recession warnings were coming thick and fast, with Jamie Dimon, chairman and chief executive of JP Morgan Chase, describing the challenges facing the U.S. economy as akin to a hurricane down the road.
In focus later today will be U.S. employment data for May.
It is believed that weak data could sway the Fed towards a less aggressive policy path.