Oil Rises on Risk Sentiment Ahead of OPEC+ Committee Meeting
Oil rose along with equity markets ahead of an OPEC+ committee meeting, as traders monitored the prospect of further U.S. sanctions on Russia.
Brent hovered around $65 after closing 1% lower on Tuesday, while West Texas Intermediate was above $61. The Joint Ministerial Monitoring Committee, which tracks market developments, meets on Wednesday before a group led by Saudi Arabia meets on Saturday to decide on output policy for July.
Members held preliminary talks last week to make a big output increase for a third straight month, delegates said.
Rising idle output by OPEC and its allies has raised concerns about oversupply and added pressure on prices. Part of the Brent futures curve is in contango — a bearish structure that signals ample supply. “Crude fundamentals are still under significant pressure,” said Gao Jian, an analyst at Shandong-based Qisheng Futures Co. “The early-session rally could be driven by improving macro risk sentiment.”
Oil has been trending lower since mid-January, with the Trump administration’s massive tariffs and retaliatory actions from targeted countries adding to the drag, raising concerns about an economic slowdown.
However, there have been some recent signs of easing trade tensions. Meanwhile, President Donald Trump warned in a social media post on Tuesday that Russian leader Vladimir Putin was “playing with fire,” as the U.S. weighs whether to target Moscow with additional sanctions.
Source: Bloomberg
