Oil prices edged lower on cautious trading ahead of the rescheduled OPEC+ meeting, now set for May 31, as markets brace for a possible decision to increase production.
Brent crude, the international benchmark, dipped by 0.04% to $64.17 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped by a similar margin to $61.32 per barrel, down slightly from the previous session’s $61.35.
The downturn in prices comes amid rising speculation that the Organization of the Petroleum Exporting Countries and its allies, including Russia, may announce a production hike during the upcoming meeting. This potential move has raised concerns about oversupply, placing downward pressure on global oil prices.
Industry analysts suggest that the group could agree to boost daily output by as much as 411,000 barrels. The alliance had already signaled plans to accelerate production growth into June, marking the second consecutive month of output expansion.
In addition to OPEC+ deliberations, investors are closely watching for key U.S. economic indicators this week, including the release of minutes from the Federal Reserve’s Federal Open Market Committee (FOMC). These updates are expected to offer insights into the trajectory of the U.S. economy.
Analysts caution that tariff-related uncertainties and signs of slowing economic growth pose downside risks to oil demand in the U.S., the world’s largest oil consumer. Any indication of reduced consumption could further dampen prices.
However, some losses were limited after President Joe Biden postponed the implementation of a planned 50% tariff on European Union goods. Initially scheduled to take effect on June 1, the tariff will now be delayed until July 9, easing immediate trade tensions and supporting sentiment around oil demand.
