Oil Prices Fall As Expectations Of Higher OPEC+ Output Weigh On Sentiment
Oil prices fell on Tuesday as market participants weighed the possibility of an OPEC+ decision to further increase crude output at its meeting later this week.
Brent crude futures were down 12 cents, or 0.19%, at $64.62 a barrel by 0022 GMT, while U.S. West Texas Intermediate crude futures were down 15 cents, or 0.24%, at $61.38 a barrel.
"Crude prices edged lower as the market priced in the prospect of increased OPEC supply," Daniel Hynes, senior commodity strategist at ANZ, said in a note.
The eight OPEC+ members that have pledged to make additional voluntary cuts are expected to meet on May 31, a day earlier than previously scheduled, three sources within the group told Reuters on Monday.
The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, are likely to finalize July output at the meeting, which sources previously said would require an output increase of 411,000 barrels per day.
This month, OPEC+ agreed to accelerate oil output increases for a second straight month in June.
However, losses were limited as U.S. President Donald Trump announced an extension of trade talks with the European Union until July 9, easing immediate concerns about tariffs that could hurt fuel demand.
Elsewhere, Iran set its official selling price for light crude for Asian buyers at $1.80 a barrel above the average Oman/Dubai price for June, the state-owned National Iranian Oil Company (NIOC) said. The price set for May was a premium of $1.65.
Iranian President Masoud Pezeshkian said on Monday that Iran would be able to survive if negotiations with the U.S. over its nuclear program failed to reach a deal.
If nuclear talks between the U.S. and Iran fail, it could mean further sanctions on Iran, which would limit Iranian supplies and support oil prices.
Source: Investing.com
