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LONDON: Oil prices were little changed on Tuesday on increasing expectations members of the Organization of Petroleum Exporting Countries and their allies, known as OPEC+, will decide to increase their output at a meeting later this week.
Brent crude futures were up 11 cents, or 0.2 percent, at $64.85 a barrel by 9:40 a.m. Saudi time, while US West Texas Intermediate crude rose 6 cents, or 0.1 percent, to $61.59 a barrel. The WTI contract did not settle on Monday because of the US Memorial Day holiday.
“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.
OPEC+ will likely finalize July output at their meeting, which sources have previously told Reuters will entail a production increase of 411,000 barrels per day.
Russian Deputy Prime Minister Alexander Novak said on Monday that OPEC+ had yet to discuss hiking output. The group is likely to finalize output quotas in an online ministerial meeting on May 28.
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.
OPEC+ members had already agreed to accelerate oil output increases for a second month in June.
However, US President Donald Trump’s decision to extend trade talks with the European Union until July 9 alleviated immediate fears of tariffs that could suppress fuel demand.
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 Co. 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 US over its nuclear program fail to secure a deal.
If nuclear talks between the US and Iran fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices.