Oil prices edged higher as U.S. traders covered short positions ahead of the three-day Memorial Day weekend, amid growing uncertainty over the outcome of nuclear negotiations between the United States and Iran.
Brent crude futures closed at $64.78 per barrel, up 34 cents or 0.54%, while U.S. West Texas Intermediate (WTI) crude rose by 33 cents, or 0.54%, to finish at $61.53 per barrel.
“There’s definitely some short-covering ahead of the long weekend,” said Phil Flynn, senior analyst at Price Futures Group. The Memorial Day weekend marks the start of the U.S. summer driving season—a period that typically sees heightened demand for gasoline and other motor fuels.
Meanwhile, nuclear discussions between U.S. and Iranian officials resumed in Rome on Friday. Traders remain cautious, fearing potential disruptions to oil supply if the talks collapse without a resolution. “These negotiations aren’t looking promising,” Flynn warned. “If this round fails and no agreement is reached, it could potentially open the door for Israeli military action against Iran.”
Adding further pressure to the market, President Donald Trump announced his intention to impose a 50% tariff on European Union goods starting June 1, citing long-standing difficulties in trade negotiations with the bloc.
“The oil market is currently under strain from two major issues,” explained Andrew Lipow, president of Lipow Oil Associates. “The looming impact of tariffs on global oil demand, and expectations that OPEC+ will boost production again this summer.”
The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and its partners led by Russia, is scheduled to meet next week. The group is widely expected to approve an additional production increase of 411,000 barrels per day (bpd) for July.
Earlier this month, Reuters reported that OPEC+ could fully phase out the remaining 2.2 million bpd in voluntary supply cuts by the end of October. The group has already raised output targets by approximately 1 million bpd across April, May, and June.
