Oil prices remained steady on Wednesday as concerns over a potential increase in output by the OPEC+ group were balanced by a decline in Canadian supply due to wildfires, amid ongoing global trade tensions.
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Brent crude futures fell by 18 cents, or about 0.3%, to $65.45 per barrel by 09:05 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 19 cents to $63.22 per barrel.
Janiv Shah, Vice President of Oil Market Analysis at Rystad Energy, noted that the market decline was driven by the anticipated easing of 411,000 barrels per day in OPEC+ cuts starting in July, despite some relative support from the halt of 344,000 barrels per day in Canadian production due to the wildfires.
Both crude benchmarks had climbed about 2% on Tuesday, reaching their highest levels in two weeks, amid concerns about supply disruptions and expectations that Iran would reject a U.S. nuclear deal proposal, potentially delaying the lifting of sanctions on one of the key producers.
Amarpreet Singh, an analyst at Barclays Bank, said, “Geopolitical tensions continue to simmer in the background, pushing underlying risks to the upside, with Russian and Iranian oil exports remaining elevated.”
In related news, U.S. President Donald Trump and Chinese President Xi Jinping are expected to speak this week, just days after Trump accused China of violating agreements to reduce tariffs and trade barriers.
Additionally, the Organisation for Economic Co-operation and Development (OECD) lowered its global growth forecast on Tuesday due to the growing impact of Trump’s trade war on the U.S. economy. – Reuters
