Oil rose as the market juggled the outlook for more OPEC+ supply and the prospect for additional US sanctions on Russia.
Brent traded above $64 after closing 1% lower on Tuesday, while West Texas Intermediate was near $61. An OPEC+ committee, which monitors developments in the market, meets later Wednesday before a group led by Saudi Arabia convenes on Saturday to decide on output policy for July.
Members held preliminary talks last week on making a large production hike for a third consecutive month, according to delegates.
The ramp up of idled production by OPEC and its allies has stoked fears about oversupply and added to the pressure on prices. Parts of the futures curve for Brent are in contango — a bearish structure that signals ample supply.
“Crude fundamentals remain under significant pressure,” said Gao Jian, a Shandong-based analyst at Qisheng Futures Co. “The early-session rally could be driven by improved macro risk sentiment.”
Oil has trended lower since mid-January, with sweeping tariffs from the Trump administration and retaliatory measures from targeted countries adding to bearish headwinds, raising concerns over an economic slowdown. However, there has been some signs recently of easing trade tensions.
President Donald Trump, meanwhile, warned in a social media post on Tuesday that Russian leader Vladimir Putin was “playing with fire”, as the US weighed whether to target Moscow with additional sanctions.
Prices:
Brent for July settlement climbed 0.5% to $64.44 a barrel as of 1:27 p.m. in Singapore.
WTI for July delivery gained 0.6% to $61.25 a barrel
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