Crude Prices Cool As US-Iran Talks, OPEC+ Plans Ease Supply Concerns

Crude oil prices cooled more than 1% on Tuesday as talks between the U.S. and Iran on a nuclear deal and OPEC+’s plans eased supply concerns.

At the time of writing, U.S. West Texas Intermediate (WTI) futures were down 1.33%, at $60.71 per barrel, compared to the previous closing price of $62.39.

Brent crude futures tumbled 1.03%, falling to $63.46 per barrel.

Tuesday’s decline in crude oil prices comes after delegations from the U.S. and Iran completed their fifth round of talks last week. There were a few signs of progress, according to a report by Reuters.

A successful nuclear deal with Iran could result in sanctions on the country being lifted, and Iranian oil supplies hitting the market, leading to a decline in prices. However, if talks don’t bear fruit, Iran could remain under sanctions, and its oil supply will not reach the markets, thereby maintaining pricing pressures.

Last week, a report by Bloomberg revealed that OPEC+ (Organization of the Petroleum Exporting Countries) is considering a “super-sized” increase in crude oil production in July.

That meeting is scheduled to take place on Wednesday.

If OPEC+ ends up hiking its output, it would be the third consecutive one, after the cartel increased production by 411,000 barrels in May and June.

According to the report, while the group stated that this increase is intended to meet demand, there could be a few other reasons for the hike, including placating President Donald Trump, who sought a production increase to keep crude oil prices under control.

It added that analysts at Morgan Stanley also expect a 411,000 barrels per day surge in output in July, in line with the expectations of the analysts at RBC Capital.

The United States Oil Fund LP (USO) fell 1.43%, while the ProShares Ultra Bloomberg Crude Oil (UCO) declined 2.34% at the time of writing.

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