Investing.com-- Oil prices extended declines in Asian trading on Friday and were on track for weekly losses, as renewed oversupply concerns emerged following a report that OPEC+ may be considering another increase in production levels.

As of 21:36 ET (01:36 GMT), Brent Oil Futures expiring in July fell 0.5% to $64.11 per barrel, while West Texas Intermediate (WTI) crude futures also lost 0.5% to $60.92 per barrel.

Both contracts were on track to decline nearly 2% for the week.

OPEC+ reportedly weighs production hike again

The Organization of Petroleum Exporting Countries and allies, collectively known as OPEC+, are weighing the possibility of another production boost at their upcoming meeting on June 1, Bloomberg News reported Thursday.

According to delegates cited in the report, one option under consideration is a supply increase of 411,000 barrels per day in July, though no final decision has been made.

"This would cement the shift in policy from the group -- moving from defending prices to defending market share," ING analysts said in a note.

OPEC+ has been in the process of unwinding output cuts, with additions to the market in May and June.

The upcoming OPEC+ meeting is set to be a pivotal moment for the oil market, as the group’s decision on production levels could have significant implications for global oil supply and prices.

Oil prices were already under pressure after the Energy Information Administration (EIA) reported that {{8849|U.S. crcrude oil inventories unexpectedly increased 1.3 million barrels for the week ending May 16, further underscoring oversupply worries.

Earlier in this week, the American Petroleum Institute (API) also reported an unexpected build of 2.5 million barrels in U.S. crude inventories.

US-Iran nuclear talks loom amid oversupply worries

Investors cautiously awaited updates on the fifth round of nuclear negotiations between Iran and the United States is scheduled for Friday, May 23, in Rome, with Oman continuing its role as mediator.

A central point of contention remains Iran’s uranium enrichment activities. While the U.S. demands a complete halt to enrichment, Iran insists on its right to enrich uranium for peaceful purposes.

If the negotiations make progress or lead to an easing of U.S. sanctions, Iran could increase its crude oil exports, further underpinning a supply surplus scenario.