Oil decreases 1% due to the increasing supply fears

Oil prices witnessed a decline of 1% today, Tuesday, amid increasing concerns about the surplus of the supply after the Iranian and American delegations made progress in their talks, and expectations that the OPEC+ will decide to increase production at a meeting early next week.

Brent crude futures decreased by 65 cents to $ 64.09 a barrel, while US West Texas Intermediate crude fell by 1.04% to $ 60.89 a barrel.

Three delegates from OPEC+ told Reuters that another meeting scheduled for Saturday may lead to accelerating oil production in July, and these developments come in the context of the fifth round of talks between the Iranian and American delegations that concluded in Rome with the hope of reaching an agreement despite the emergence of differences on the enrichment of Iranian uranium.

With the possibility of increasing production on the horizon, Dennis Kisler from BOC Financial indicated that the upcoming OPEC+ step may pressure crude oil prices, especially if Iran returns to increase its market share.

On the other hand, a poll revealed a possible increase in US oil stocks by 500,000 barrels last week. On the trade level, the decision of former US President Donald Trump to extend talks with the European Union has led to a relative positive response in the market. Giovanni Stonovo from UBS saw that the intensity of commercial concerns contributed to supporting prices, but looking remains towards OPEC+ UIC decisions.