Oil Prices Steady as Market Eyes US Crude Stockpiles and OPEC+ Output Decision

Oil prices edged higher for a second consecutive day on Tuesday, with Brent crude trading above $67 per barrel and West Texas Intermediate (WTI) hovering near $66, as the market pivots its focus to critical supply and economic signals expected this week.

Traders are closely watching official US inventory data, the upcoming jobs report, and Sunday’s virtual OPEC+ meeting, all of which could reshape short-term sentiment in the global oil market.

The American Petroleum Institute (API) reported a 1.4 million barrel drop in stockpiles at Cushing, Oklahoma, the pricing hub for WTI. If confirmed by the US Energy Information Administration, it would mark the largest drawdown since January and bring inventories to their lowest seasonal level since 2005.

Crude futures trading volume has declined since the temporary ceasefire between Israel and Iran drove prices lower early last week, according to Bloomberg. As geopolitical risks ease, volatility has returned to pre-conflict levels, shifting the spotlight back to looming supply surpluses.

Market sentiment is increasingly shaped by expectations that OPEC+ will approve another increase in production quotas at its upcoming meeting.

Crude oil prices remained roughly unchanged week-on-week as the market focus shifts from the ceasefire in the Middle East to this Sunday’s virtual OPEC+ meeting.

The oil market remains on edge, balancing short-term supply constraints with longer-term oversupply forecasts that could pressure prices. With Brent crude trading at a fragile equilibrium above $67, the outcome of this week’s economic indicators and OPEC+ deliberations will be key to determining crude’s next move.