UPDATE 8-Oil falls, ends week about 2% lower on supply increase, new lockdowns

* U.S.-Iran nuclear talks in focus after OPEC+ supply rise
* U.S. drillers hold oil rig count steady this week -Baker
Hughes

(Updates with settlement prices, adds context on weekly price
movement)
By Laura Sanicola
NEW YORK, April 9 (Reuters) - Oil prices settled lower on
Friday and fell around 2% this week as production increases and
renewed COVID-19 lockdowns in some countries offset optimism
about a recovery in fuel demand.
Brent crude futures LCOc1 for June settled down 22 cents,
or 0.4%, to $62.95. U.S. West Texas Intermediate (WTI) crude
CLc1 for May ended 28 cents, or 0.5%, lower at $59.32.
Downward pressure has been exerted by the decision of the
Organization of the Petroleum Exporting Countries (OPEC) and its
allies, known as OPEC+, to increase supplies by 2 million
barrels per day between May and July. "Favorable oil demand prospects are being largely offset by
the expected increase in OPEC + production that could be
approximating 2 million bpd by the end of July," said Jim
Ritterbusch, president of Ritterbusch and Associates in Galena,
Illinois.
Talks to bring Iran and the United States fully back into
the 2015 nuclear deal are making progress, delegates said on
Friday, but Iranian officials indicated disagreement with
Washington over which sanctions it must lift. A deal would
potentially bring an additional 2 million bpd of supply into the
market, according to data intelligence firm Kpler. Meanwhile, U.S. drillers kept the number of oil rigs
unchanged this week, energy services firm Baker Hughes Co
BKR.N said on Friday, with analysts forecasting more rigs were
needed to keep production steady. Renewed lockdowns in some parts of the world and problems
with vaccination programs could threaten the oil demand picture.
Stephen Innes, chief global markets strategist at Axi, said
oil prices are expected to trade in a range between $60 and $70
as investors weigh these factors.
"There's real push-pull in the market based on vaccination
acceleration, increased production and new lockdowns, which is
why we are moving sideways," said John Kilduff, partner at Again
Capital LLC in New York.