Oil futures edged lower in holiday-thinned trading on Friday, as the market awaited an OPEC+ meeting later this week and the likelihood that member nations would decide to raise output.

Brent crude was down 50 cents, or 0.7%, at $68.30 a barrel while U.S. West Texas Intermediate crude was down 50 cents, or 0.75%, at $66.50 shortly before 1 p.m. EDT (1700 GMT). Trading was thin due to the U.S. Independence Day holiday.

Brent crude was up about 0.8% from Friday's close and WTI crude was up about 1.5%.

The eight-nation OPEC+ group is likely to raise oil output again for August at its meeting on Saturday in an effort to increase market share. The meeting was moved up a day to Saturday. "If the group decides to increase its output by 411,000 barrels per day (bpd) in August, as expected, for the fourth consecutive month, the oil balance estimates for the second half of the year will be reassessed and will show an acceleration in the buildup of global oil inventories," said PVM analyst Tamas Varga.

"There seems to be some profit-taking on concerns that OPEC will increase production more than expected," said Phil Flynn, senior analyst at Price Futures group.

He added that investors appear to be in wait-and-see mode, preparing to react to OPEC's move while also watching the implications of US President Donald Trump's massive tax-cutting and spending package, which is due to be signed into law at a ceremony at the White House on Friday.

Crude prices were also pressured by a report in US news website Axios, which said the United States plans to resume nuclear talks with Iran next week, while Iranian Foreign Minister Abbas Araqchi said Tehran remains committed to the Nuclear Non-Proliferation Treaty.

Meanwhile, uncertainty over U.S. tariff policy returned to the spotlight as a 90-day pause on higher levies expired.

European Union negotiators have so far failed to reach a breakthrough in trade talks with the Trump administration and may now seek to extend the status quo to avoid tariff hikes, six EU diplomats briefed on the talks said on Friday.

Separately, Barclays said it had raised its Brent oil price forecasts by $6 to $72 a barrel for 2025 and by $10 to $70 a barrel for 2026 due to the improving demand outlook. (alg)

Source: Reuters