Oil prices eased on Tuesday as market participants weighed the possibility of an OPEC+ decision to further increase its crude oil output at a meeting later this week.
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U.S. crude oil futures rose about 4% on Monday after OPEC+ increased production at a steady rate, easing investor fears that the group might boost output even faster.
West Texas Intermediate futures rose $2.53, or 4.16%, to $63.32 per barrel. Global benchmark Brent was up $2.34, or 3.73%, at $65.12 per barrel.
The eight producers in OPEC+, led by Saudi Arabia, agreed to increase production by 411,000 barrels per day in July, the third consecutive month the group has boosted output at that rate.
“There were market concerns of a faster unwind process,” said Giovanni Staunovo, commodity analyst at UBS, told clients in a note Saturday. “For now, the oil market remains tight, indicating it can absorb additional barrels,” Staunovo said.
