Oil Prices Slip Amid Supply Concerns and OPEC+ Outlook

Oil prices dropped by around 1.5% on Tuesday as concerns over a potential supply glut surfaced following partial progress in nuclear talks between Iranian and U.S. delegations and expectations that OPEC+ may boost production later this week.

By 14:57 GMT, Brent crude futures fell 99 cents, or 1.5%, settling at $63.73 per barrel. U.S. West Texas Intermediate crude declined $1.02, or approximately 1.7%, to $60.48 per barrel.

While OPEC+ is not expected to alter its policy during the Wednesday meeting, sources indicate that a Saturday session is likely to approve an accelerated increase in oil output for July.

Last week in Rome, Iranian and U.S. officials concluded their fifth round of nuclear talks. Though limited progress was noted, significant disagreements remain—particularly over Iran’s uranium enrichment program. A failure to reach an agreement could maintain sanctions on Iran, restricting its oil supply, whereas a resolution could introduce more Iranian oil to the market.

On the positive side for oil prices, U.S. President Donald Trump extended trade negotiations with the European Union until July 9, easing immediate fears of tariffs that could dampen fuel demand. This announcement contributed to a stronger opening on Wall Street on Tuesday.

UBS analyst Giovanni Staunovo noted that while easing trade tensions provided some price support, oil prices will likely remain capped until OPEC+ makes a clear decision this weekend.

In currency markets, the dollar gained strength as the Japanese yen weakened due to a sharp decline in Japan’s long-term bond yields, while investors welcomed the delay in EU tariffs.

Source: Reuters