Oil prices decline due to possible OPEC+ production increase

On Tuesday, crude oil prices are declining moderately as market participants assess the possibility of a decision to further increase oil production at the OPEC+ meeting later this week.

According to Reuters data from OPEC+ insiders, the organization's eight members, who previously committed to additional oil production cuts, will meet on May 31, one day ahead of schedule.

Experts quoted by the agency expect that during the meeting, the alliance will make a final decision on the July production volumes. This is likely to entail an increase in oil production by 411 thousand barrels per day, according to Reuters sources.

OPEC+ has already agreed this month to accelerate oil output increases in June for the second month in a row.

Nevertheless, the drop in the commodity price due to the expected increase in production was limited by an extension of trade talks between the US and Europe until July 9. This has somewhat alleviated current fears that trade tensions could suppress fuel consumption. 

In addition, market participants are keeping an eye on the relations between the US and Iran.