Oil prices edged down during Friday’s trading session in Asia, with investors closely watching for clues from the forthcoming OPEC+ meeting. Meanwhile, new sanctions imposed by the U.S. on Iran helped prevent a sharper drop in crude prices.

September Brent crude slipped by 0.2% to $68.66 per barrel, while WTI futures declined by the same margin to $65.51. Despite the modest retreat, both benchmarks remain higher by 1 to 2% over the week, bouncing back from significant losses experienced in the previous trading period.

The upward momentum of the U.S. dollar, fueled by stronger-than-expected nonfarm payroll figures, weighed on oil demand prospects as hopes for imminent interest rate cuts faded. Market jitters also persisted due to uncertainty over the U.S. economic trajectory, amplified by the contentious passage of a tax-and-spending package in the House and upcoming tariff decisions set for July 9.

OPEC+ Considers Further Production Boost

Focus now shifts to the OPEC+ meeting scheduled for the weekend, where the cartel is expected to deliberate on increasing oil output by approximately 411,000 barrels per day for August. This potential raise would mark the fourth straight month of output hikes, as the alliance gradually reverses previous production cuts made during the market downturn.

Saudi Arabia, leading the group, is also reinforcing compliance measures, threatening penalties against members who exceed their production quotas. These steps align with the U.S. government’s broader strategy to encourage increased oil supply and stabilize energy prices. Crude prices briefly surged to multi-year highs in June amid heightened tensions between Israel and Iran but have since retreated below the $70 mark as geopolitical pressures ease.

U.S. Intensifies Sanctions Targeting Iran’s Oil Network

Separately, the U.S. Treasury Department unveiled a new round of sanctions aimed at disrupting a smuggling operation linked to Iranian oil exports. The operation, allegedly orchestrated by Iraqi-British citizen Salim Ahmed Said, is accused of disguising Iranian crude as Iraqi in order to evade sanctions.

These latest measures are intended to curb Iran’s oil revenue streams and increase pressure on Tehran regarding its nuclear ambitions. Tensions escalated recently after U.S. strikes on Iranian nuclear facilities in late June led Iran to suspend cooperation with the UN nuclear watchdog. Nonetheless, diplomatic efforts continue, with fresh nuclear negotiations scheduled to take place in Oslo next week, as reported by Axios.