Oil edges down as potential higher OPEC+ output eyed
Oil prices eased on Tuesday as market participants weighed the possibility of an OPEC+ decision to further increase its crude oil output at a meeting later this week.
Brent crude futures shed 12 cents, or 0.19 per cent, to $64.62 a barrel by 0022 GMT, while U.S. West Texas Intermediate crude was down 15 cents, or 0.24 per cent, at $61.38 a barrel.
"Crude oil edged lower as the market contemplated the outlook for rising OPEC supply," Daniel Hynes, senior commodity strategist at ANZ, said in a note.
Eight OPEC+ members that had pledged additional voluntary cuts are now expected to meet on May 31, one 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+, will likely finalise July output at the meeting, which sources have previously told Reuters will entail a production increase of 411,000 barrels per day.
This month, OPEC+ agreed to accelerate oil output increases for a second consecutive month in June.
However, losses were limited as U.S. President Donald Trump announced an extension to trade talks with the European Union until July 9, alleviating immediate fears of tariffs that could suppress fuel demand.
Elsewhere, 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, the state-owned National Iranian Oil Company (NIOC) said. The price it 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 programme fail to secure a deal.
If nuclear talks between the U.S. and Iran fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices.
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