Oil Is Close to A Two-month High Despite Global Supply Worries

In the previous session, oil prices surged to a two-month high as investors focused on signs of a tightening global supply. In early Asian trade on Friday, oil prices retreated slightly as investors focused on indicators of a tightening worldwide supply.

In the meantime, a senior Hungarian aide stated that the country needs three and a half to four years to transition away from Russian crude and make massive expenditures to restructure its economy, and that it could not support the EU's proposed oil embargo until all difficulties were resolved.

This month, the European Commission suggested further penalties against Russia for its invasion of Ukraine, but stated that they require the support of all 27 bloc members. Hungary, which is landlocked and heavily dependent on Russian oil imports through a pipeline, has thus far banned these imports.

At 0:08 GMT, Brent crude futures declined 11 cents to $117.29 a barrel. WTI crude futures for delivery in July decreased by 19 cents to $113.90 a barrel.

Prices have increased by around 50 percent so far this year.

OPEC is expected to adhere to last year's oil production agreement at its June 2 meeting and hike July output objectives by 432,000 barrels per day, six OPEC sources told Reuters, rebuffing Western pleas for a more rapid increase to reduce soaring prices.