Oil prices dipped slightly on Tuesday as investors largely stayed on the sidelines, awaiting a key OPEC+ meeting that could offer critical guidance on future supply decisions.
As of 07:50 ET (11:50 GMT), Brent crude futures had fallen 0.5% to $63.81 per barrel, while West Texas Intermediate (WTI) crude slipped 0.6% to $61.18.
Trading activity was subdued, partly due to public holidays in both the United States and the United Kingdom on Monday.
Some support for oil prices came after U.S. President Donald Trump announced a delay in his proposed 50% tariffs on European Union imports, moving the implementation date from June 1 to July 9, easing near-term trade tensions.
Markets Await OPEC+ Decision
Investors are focused on the upcoming OPEC+ meeting, where the oil-producing alliance may consider a modest production increase. According to Bloomberg, members are exploring the possibility of raising supply levels.
Reuters reported that eight OPEC+ countries, which had previously committed to voluntary output cuts, will convene on May 31, one day earlier than initially scheduled. One scenario under discussion involves increasing production by 411,000 barrels per day in July, though a final agreement has not yet been reached.
OPEC+ has already begun gradually reversing its production cuts, adding supply to the market in May and June.
“We’re working under the assumption that OPEC+ will approve a 411,000 bpd increase in July,” said ING analysts, noting this would likely keep global oil markets well supplied through the second half of the year.
Geopolitical Risk: U.S. Eyes Russia Sanctions
Meanwhile, President Trump intensified his rhetoric against Russian President Vladimir Putin, calling him “absolutely CRAZY” following a large-scale aerial assault on Ukraine. Trump reiterated his belief that Putin aims to take over all of Ukraine and warned that such ambitions could bring about Russia’s downfall.
In a social media post, Trump criticized both Putin and Ukrainian President Volodymyr Zelenskyy, and confirmed he is “absolutely” considering additional sanctions on Russia.
Any new sanctions could disrupt Russian energy exports, potentially tightening global oil supply.
U.S. Inventory and Drilling Activity in Focus
Markets are also watching for upcoming U.S. crude inventory data, delayed due to the holiday. The figures will be closely analyzed as the summer driving season gets underway and lower oil prices continue to curb domestic drilling.
Baker Hughes data showed the number of active U.S. oil rigs fell by 8 last week, bringing the total to 465—the lowest level since November 2021, and marking the fourth straight week of declines.
