FX.co ★ Oil Falls Ahead OPEC+ Meeting

WTI crude oil futures have fallen below $61 a barrel after experiencing earlier gains, as market participants anticipate an upcoming OPEC+ meeting. This meeting is expected to lead to a decision on enhancing oil production levels. Sources suggest that OPEC+ is likely to approve an increase of 411,000 barrels per day for July, a continuation of their plan to accelerate supply growth seen with a similar planned increase for June. Despite these speculations, Russian Deputy Prime Minister, Alexander Novak, has stated that the group has not yet formally discussed the proposed output increase. Moreover, escalating tensions persist due to the possibility of new US sanctions on Russia in response to recent drone strikes in Ukraine, which might jeopardize the supply from one of the world’s leading oil producers. On the trade side, US President Trump has delayed trade discussions with the European Union until July 9. This move has temporarily abated concerns about tariffs that could negatively impact fuel demand, especially since Brussels has agreed to expedite negotiations following Trump's recent criticisms.