Oil Prices Decline ahead of OPEC+ Meeting
Oil prices are trending lower ahead of the Organisation of Petroleum Exporting Countries and allies’ members (OPEC+) meeting, which has been moved up to May 31, as expectations rise that the group may decide to boost production.
International benchmark Brent crude declined by around 0.04%, trading at $64.17 per barrel. Similarly, the US benchmark West Texas Intermediate (WTI) fell by about 0.04%, settling at $61.32 per barrel, compared to $61.35 in the prior session.
Growing speculation that the coalition of the Organization of the Petroleum Exporting Countries and allies, including Russia, could announce a production hike is fueling concerns of a potential oversupply, adding downward pressure on prices.
Industry experts suggest the group may agree to increase daily output by 411,000 barrels at this week’s meeting. The alliance had already reached a deal to accelerate production growth for a second consecutive month in June.
Analysts also point to key economic data releases and minutes from the US Federal Reserve’s Federal Open Market Committee (FOMC), both due this week, as potential indicators of the US economy’s trajectory.
They warn that expected slower growth, partly driven by tariff related factors, remains a major risk for the US economy. In the world’s largest oil consumer, the US, signs of economic slowdown could weigh on demand, potentially dragging prices lower.
However, losses are being partially capped by market optimism following US President Donald Trump’s announcement that a planned 50% tariff on EU goods, initially set to begin on June 1, will be delayed until July 9.
The move has sparked expectations that oil demand sentiment could improve, providing some support to prices. Dangote, Jaiz Bank Drive Intraday Loss in Equities Market
