*

Brent and WTI down over 1% this week

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OPEC+ could discuss bigger July output rise at Saturday

meeting

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Trade uncertainty continues after US appeals court

decision

(Updates prices, adds information on U.S. consumer spending

data in paragraph 12)

By Robert Harvey

LONDON, May 30 (Reuters) - Oil prices were steady on

Friday and headed for a second consecutive weekly loss, as

investors weigh a potentially larger OPEC+ output hike for July,

and uncertainty spreads around U.S. tariff policy after the

latest courtroom twist.

Brent crude futures fell by 18 cents, or 0.28%, to

$63.97 a barrel by 1308 GMT. U.S. West Texas Intermediate crude

fell by 18 cents, or 0.3%, to $60.76 a barrel.

The Brent July futures contract is due to expire on Friday.

The more liquid August contract was trading 33 cents

lower, or 0.5%, at $63.02 per barrel.

At these levels, the front-month benchmark contracts were

headed for weekly losses over 1%.

Price moves dipped into negative territory after Reuters

reported that OPEC+ may discuss an increase in July output

larger than the 411,000 barrels per day (bpd) that the group had

made for May and June.

"The oil price would probably only come under greater

pressure if the oil-producing countries were to increase their

production even more than in previous months or give indications

that there will be similarly high production increases in the

following months," Commerzbank analysts said earlier on Friday

in a note, published before the news.

The potential hike comes as the global surplus has widened

to 2.2 million bpd, likely necessitating a price adjustment to

prompt a supply-side response and restore balance, said JPMorgan

analysts in a note, adding they expect prices to remain within

the current range before easing into the high $50s by year-end.

U.S. President Donald Trump's tariffs were expected to

remain in effect after a federal appeals court temporarily

reinstated them on Thursday, reversing a trade court's decision

a day earlier to put an immediate block on the sweeping duties.

Oil prices were down more than 1% on Thursday.

The appeals court's decision pushed Brent to the bottom of

its recent tight range, Investec's head of commodities Callum

Macpherson said.

Oil prices have lost more than 10% since Trump announced his

"Liberation Day" tariffs on April 2.

Also pressuring prices, U.S. consumer spending slowed in

April, according to data published on Friday.