Oil Prices Stabilize Ahead of OPEC+ Meeting Amid Expectations of Production Increase and Global Economic Data
Oil prices maintained their stability during trading on Wednesday, July 2, amid market anticipation for decisions by the OPEC+ alliance scheduled for this week, which will determine production policy for the upcoming month of August. Forecasts indicate a continued gradual increase in oil supply from major producers.
Brent crude remained stable at $67.18 per barrel, while West Texas Intermediate crude stood at $65.47. This performance was supported by positive data from China, the world's largest oil importer, revealing an expansion in the industrial sector in June, bolstering expectations for improved energy demand.
Since June 25, Brent crude prices have fluctuated between $66.34 and $69.04 per barrel, following the easing of tensions between Iran and Israel, which lasted for 12 days, reducing concerns about oil supply disruptions from the Middle East.
In this regard, Phil Flynn, senior analyst at Price Futures Group, told Reuters, "Oil prices are moving within a narrow range, with geopolitical tensions easing and the market focusing on upcoming OPEC+ decisions."
It is expected that the OPEC+ alliance will decide during its meeting on July 6 to increase oil production by 411,000 barrels per day for August, according to Reuters citing four informed sources, maintaining the same pace of increases adopted by the alliance over the past three months.
These increases seem to be impacting the market, as Saudi Arabia, the world's largest oil exporter, raised its exports by about 450,000 barrels per day in June compared to May, according to data from Kepler Energy Analytics, marking the highest level of exports in over a year.
On the other hand, preliminary data from the American Petroleum Institute showed a rise in oil inventories in the United States by 680,000 barrels last week, with the official Energy Information Administration figures to be announced later today.
Tony Sycamore, analyst at IQ, pointed out that markets are now awaiting the release of the US non-farm payrolls data scheduled for Thursday, which may determine the timing and extent of expected interest rate cuts by the Federal Reserve in the second half of the year, potentially supporting economic growth and boosting oil demand.
In a related context, investors closely monitor developments regarding trade negotiations before the July 9 deadline for imposing new tariffs, following US President Donald Trump's statement on Tuesday that he "is not thinking of extending the deadline," increasing suspense in global markets.
