Oil edges up as investors await OPEC+ meeting, tariff talks
Oil prices were slightly higher on Tuesday as investors assessed expectations that OPEC+ will announce an output hike for August at an upcoming meeting, while also keeping an eye on negotiations between the U.S. and its trading partners.
Brent crude was up 28 cents, or 0.4%, to $67.03 a barrel at 1328 GMT, while U.S. West Texas Intermediate crude was up 35 cents, or around 6%, to $65.46 a barrel.
The market’s main focus is the 411,000-barrel-per-day production hike that OPEC+ is expected to announce for August in a July 6 meeting, said Saxo Bank analyst Ole Hansen, adding that its impact was partially offset by potential trade deals improving the demand outlook.
"The market is now concerned that the OPEC+ alliance will continue with its accelerated rate of output increases," Daniel Hynes, ANZ’s senior commodity strategist, said in a note.
Four OPEC+ sources told Reuters last week that the group, comprising the members of the Organization of Petroleum Exporting Countries and allies including Russia, plans to raise output by 411,000 bpd next month, following similar hikes in May, June, and July.
If approved, this hike would bring OPEC+’s total supply increase for the year to 1.78 million bpd, equivalent to more than 1.5% of global oil demand.
Also supporting oil prices was a weaker U.S. dollar, which was making commodities cheaper in non-U.S. dollar consuming countries, UBS analyst Giovanni Staunovo said.
Investors are also watching trade negotiations ahead of U.S. President Donald Trump’s tariff deadline of July 9.
Source : Reuters
