(Bloomberg) – Oil was steady as the market weighed the prospect for easing trade tensions between the European Union and the U.S. ahead of an OPEC+ meeting on supply policy.
Brent traded below $65/bbl, after a quiet session on Monday, due to holidays in London and New York. Brussels has agreed to accelerate trade talks with the U.S., just days after comments from President Donald Trump.
Global markets have been rattled by Trump’s tariffs and retaliatory measures from targeted countries, including China. The U.S. President also said he’s considering new sanctions against Russia, after a large drone attack on Ukraine in recent days.
Oil has trended lower since mid-January on concerns around the fallout from trade tensions, with a push by OPEC and its allies to restore idled supply adding to headwinds. Prices have since stabilized near $65/bbl, as traders await the next output move from OPEC+, due in the coming days.
“Crude prices appear to be consolidating around the $65 level as markets await the upcoming OPEC+ meeting,” said Ole Hvalbye, an analyst at SEB AB. “We assign a high probability to another sizeable output increase of 411,000 barrels per day.”
OPEC+ has brought forward a video conference that will decide July production levels for eight key members by one day to May 31, according to delegates with knowledge of the matter. The group held preliminary talks last week on making another bumper output increase for a third consecutive month.
