Oil prices eased on Tuesday as market participants considered the potential for an OPEC+ decision to further increase its crude oil output during a meeting scheduled later this week.
Brent crude futures declined by 12 cents, or 0.19 percent, settling at $64.62 a barrel by 00:22 GMT (currently above $63.85), while U.S. West Texas Intermediate crude was down 15 cents, or 0.24 percent, at $61.38 a barrel (currently above $61.2).
“Crude oil edged lower as the market contemplated the outlook for rising OPEC supply,” Reuters reported, citing Daniel Hynes, senior commodity strategist at ANZ.
Eight OPEC+ members, who had committed to additional voluntary cuts, are now anticipated to meet on May 31, one day earlier than initially planned, Reuters disclosed on Monday. The Organization of the Petroleum Exporting Countries and its allies, collectively referred to as OPEC+, are expected to finalize July output during this meeting, which sources have previously indicated to Reuters will involve a production increase of 411,000 barrels per day. This month, OPEC+ agreed to accelerate oil output increases for the second consecutive month in June.
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Trade talks extension
However, losses were limited as U.S. President Donald Trump announced an extension to trade talks with the European Union until July 9, easing immediate concerns regarding tariffs that could dampen fuel demand. In another development, Iran set the official selling price for its light crude oil grade for Asian buyers at $1.80 a barrel above the Oman/Dubai average for June, as reported by the state-owned National Iranian Oil Company (NIOC). The price set for May was a premium of $1.65.
Iranian President Masoud Pezeshkian stated on Monday that Iran would be able to endure if negotiations with the U.S. over its nuclear program fail to yield a deal. Should nuclear talks between the U.S. and Iran collapse, it could result in continued sanctions on Iran, which would restrict Iranian supply and potentially support oil prices.
