Oil prices moved little in Asian trade on Tuesday, steadying from a recent rebound as reports of more planned production increases by the OPEC dulled optimism over cooling U.S.-China trade tensions.
Crude prices rose sharply in recent sessions after the U.S. slapped Russia with strict sanctions, which presented risks to global supply. Optimism over a framework trade deal between the U.S. and China also helped.
But oil lost momentum on Monday after reports that the Organization of Petroleum Exporting Countries and allies (OPEC+) was planning to increase production again in the coming months.
Brent oil futures for December fell 0.1% to $65.59 a barrel, while West Texas Intermediate crude futures fell 0.1% to $61.26 a barrel by 21:21 ET (01:21 GMT).
OPEC+ seen considering production hike in December The OPEC+ is considering increasing oil production in December, with at least eight member states set to support the increase when they meet this coming Sunday.
Bloomberg reported the group is set to focus on a third monthly production hike of 137,000 barrels a day, as it began gradually unwinding two years of production cuts.
The OPEC+ began raising production despite weakness in oil markets, with the cartel seeking to reclaim a greater share of the oil market in order to offset the impact of prolonged weakness in oil prices.
Oil markets focus on Russia sanctions, US-China trade progress Oil prices had risen sharply last week after the U.S. announced sanctions against Russia’s two largest crude firms– Lukoil and Roseneft.
Markets were now waiting to see whether the sanctions will cause any noticeable disruptions in Russian oil supplies, given that Moscow has in the past found ways to duck U.S. restrictions.
Still, last week’s sanctions marked a pivot in the Donald Trump administration towards a more aggressive stance against Moscow, over the Ukraine war. Trump was also seen approving more military aid for Kyiv.
The U.S. could target Russia’s biggest oil buyers– India and China– over their crude purchases, with Washington having slapped India with 50% trade tariffs over the matter.
Trump had also threatened action against China, although trade tensions with Beijing were seen cooling this week, after officials said a framework trade deal had been reached.
The deal will be built on when Trump and Chinese President Xi Jinping meet in South Korea later in the week.
Cooling Sino-U.S. trade tensions also supported oil prices this week.
