Oil prices were unchanged on Friday amid conflicting supply messages from Russia and Saudi Arabia ahead of the next OPEC+ policy meeting, a stronger U.S. currency, and concerns about weaker demand growth.

At 0627 GMT, Brent crude increased 6 cents to $76.32, while West Texas Intermediate rose 18 cents to $72.01.

After Russian Deputy Prime Minister Alexander Novak downplayed OPEC+ output restrictions at its June 4 Vienna summit, benchmarks fell more than $2 per barrel on Thursday. However, both prices were poised to climb less than 1% for a second week.

On Wednesday, Russian President Vladimir Putin said energy prices were approaching “economically justified” levels and that the group’s production program would not change.

Prince Abdulaziz bin Salman, the de facto leader of OPEC, warned short sellers to “watch out” this week.
Investors viewed that as OPEC+ considering more output cutbacks.

With U.S. statistics showing a strong economy even after an aggressive interest rate hike cycle by the Federal Reserve, the dollar climbed for a fifth session against a basket of major rivals, limiting price movement.

Demand for dollar-denominated commodities decreases as the currency strengthens. Investors are worried about weaker global demand growth.

“There are several signals that global demand growth may not meet prior year expectations. “China, which constitutes about half of most estimates, looks increasingly unlikely to reach anyone’s estimates for 2023,” Citigroup stated in a client note.

“We will see some of these demand numbers being cut in the near future and that will continue to have a drag on oil market sentiment in the near term,” said Suvro Sakar, chief energy analyst at DBS Bank.

Positively, OPEC+ and Russia’s May supply fell mostly in line with the prior output cut deal.

As of last week, OPEC+ members who agreed to earlier cuts have reduced their exports by 1.5 million barrels per day (bpd), while Russian exports fell 400,000 bpd from their respective peaks on April 25, with total OPEC+ exports down 1.4 million bpd month on month by May 23, JP Morgan analysts said in a note.