Oil prices are declining ahead of the meeting of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, as expectations rise that the group may decide to increase production.
The OPEC+ meeting has been rescheduled to May 31. Growing speculation about a potential production hike is adding downward pressure on oil prices due to fears of oversupply.
Brent crude, the international benchmark, has declined by around 0.04% to $64.17 per barrel.
Similarly, West Texas Intermediate (WTI), the US benchmark, has fallen by about 0.04% to $61.32 per barrel, compared to $61.35 in the prior session. Industry experts suggest that OPEC+ may agree to increase daily output by 411,000 barrels at the upcoming meeting.
The alliance had previously decided to accelerate production growth for June. Market participants are also awaiting key economic data releases and the minutes from the US Federal Reserve’s Federal Open Market Committee (FOMC) this week.
These are expected to provide indicators of the US economy’s trajectory. Analysts warn that expected slower growth, partly driven by tariff-related factors, remains a major risk for the US economy.
In the US, the world’s largest oil consumer, signs of an economic slowdown could weigh on oil demand, potentially exerting further downward pressure on prices.
However, the decline in oil prices is being partially offset by market optimism following US President Donald Trump’s announcement to delay a planned 50% tariff on EU goods.
The tariff, initially set to begin on June 1, will now be implemented on July 9. This delay has sparked expectations that oil demand sentiment could improve, providing some support to prices.
