Oil Prices Dip as OPEC+ Prepares to Increase Supply
Oil prices fell for a second consecutive session on Tuesday as expectations mount that OPEC+ will agree to increase production at their upcoming meeting. While the market anticipates higher supply, a hold on U.S.โEU tariff worries provided some measure of support.
Current Price Movement
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Brent Crude: Down 0.4% to $64.50/bbl
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WTI Crude: Down 0.5% to $61.24/bbl (no settlement reported on Monday due to the Memorial Day holiday)
OPEC+ Supply Outlook
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Expected Increase: Sources indicate a possible increase of 411,000 barrels per day for July is under consideration.
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Meeting Schedule: An online ministerial meeting is set for May 28, with voluntary cut members convening on May 31, one day ahead of schedule.
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Official Position: Russiaโs Novak mentioned that no formal discussions have taken place yet, highlighting the fluid nature of negotiations.
Demand Dynamics
The U.S. President Trump’s decision to delay 50% tariffs on EU goods until July 9 has eased immediate concerns about a potential demand downturn related to trade. This delay has provided a cap on further losses, even as market players prepare for a more relaxed supply scenario.