West Texas Intermediate (WTI), the U.S. crude oil benchmark, is trading near $61.25 during Asian market hours on Tuesday, maintaining stability as investors await crucial signals from the upcoming OPEC+ meeting.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) is set to decide oil output levels for eight major member nations on May 31, a day earlier than initially scheduled. According to Reuters sources, the group is considering continuing its current policy of increasing production by 411,000 barrels per day for a third consecutive month. However, Russian Deputy Prime Minister Alexander Novak noted that no formal discussions on raising output by this amount have yet taken place ahead of the meeting.
In parallel geopolitical developments, U.S. President Donald Trump voiced optimism regarding ongoing nuclear negotiations with Iran following recent discussions in Rome. Iranian Foreign Minister Abbas Araghchi acknowledged that the talks remain complex and cannot be resolved in just a few sessions. Still, he indicated progress could be made, citing mediation efforts by Oman. Trump described the weekend talks as “very good,” suggesting that U.S. negotiators had made “real progress.” However, any breakthrough in the negotiations could ease sanctions on Iranian oil exports, potentially limiting WTI’s near-term gains.
Adding to the geopolitical mix, Trump announced an extension of the 50% tariff deadline on the European Union until July 9 after a phone conversation with European Commission President Ursula von der Leyen. This move has added a layer of support for oil prices, helping to stabilize the market amid broader uncertainties.
Overall, oil traders remain cautious as they look to the OPEC+ decision and geopolitical developments for direction.
