Oil prices fell by about 1% on Tuesday as traders weighed signs of progress in U.S.-Iran nuclear talks and anticipated further production increases from OPEC+, raising concerns of a potential oversupply.
Brent crude settled at $64.09 a barrel, down 65 cents or 1%, while U.S. West Texas Intermediate (WTI) crude dropped 64 cents, or 1.04%, to $60.89.
Investors were cautious ahead of two key OPEC+ meetings—one on Wednesday, where no major policy shift is expected, and a more pivotal gathering on Saturday, where the group is likely to approve an accelerated output increase for July. Delegates indicated a boost of 411,000 barrels per day is under discussion.
Adding to the bearish tone, the fifth round of nuclear talks between the U.S. and Iran concluded in Rome last week with modest progress but persistent disagreements over uranium enrichment. A deal could bring additional Iranian crude to the market, pressuring prices further. However, if talks collapse, sanctions would likely remain in place, limiting Iranian exports.
Meanwhile, early data suggested U.S. crude stockpiles may have risen by 500,000 barrels last week, reinforcing oversupply concerns. However, some upward support came from a temporary halt in oil and gas operations due to wildfires in Alberta, Canada.
Elsewhere, markets found some relief as President Trump extended trade negotiations with the European Union until July 9, easing immediate tariff fears and helping support fuel demand expectations. Wall Street’s positive response to the reprieve offered some additional stabilization to oil prices.