WATCH THE VIDEO HERE Oil prices settled 1 per cent lower on Tuesday as investors worried about a supply glut after Iranian and US delegations made progress in their talks, with Brent crude losing 65 cents or 1 per cent to close at $64.09 per barrel and the US West Texas Intermediate (WTI) crude declining by 64 cents or 1.04 per cent to sell for $60.89 a barrel. Iranian and US delegations wrapped up a fifth round of talks in Rome last week, signaling that some form of co-operation is ongoing. While signs of limited progress emerged, there were many points of disagreement that were hard to breach, notably the issue of Iran’s uranium enrichment. If nuclear talks between the US and Iran fail, it could mean continued sanctions on Iran, which would limit Iranian oil supply, while any resolution could add Iranian supply to the market. Meanwhile, there are expectations that the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) will decide to increase output at a meeting this week. Another meeting on Saturday is likely to agree to a further accelerated oil output hike for July. The United Arab Emirates (UAE), a member of the alliance, said the group must consider rising oil demand when it makes decisions about production levels. The OPEC+ alliance is doing its best to balance the oil market, UAE’s Energy Minister Suhail, Mr Mohamed Al Mazrouei said at an Abu Dhabi forum on Tuesday. “But it is not enough only this group, we need the help of others, and we need to be mindful of the demand,” Mr Al Mazrouei added. OPEC+ has already announced two consecutive production increases for May and June, each of 411,000 barrels per day, triple the volume the group had previously planned. Another 411,000 barrels per day output hike is among the options which the OPEC+ member countries that have been withholding output are discussing for the July production. Supporting prices, US President Donald Trump’s decision to extend trade talks with the European Union (EU) until July 9 alleviated immediate fears of tariffs that could suppress fuel demand. Market analysts noted that while easing trade concerns were supportive, prices remain limited until it is clear what OPEC+ will decide on Saturday. Also helping prices, a wildfire in the Canadian province of Alberta prompted the temporary shutdown of some oil and gas production.
Supply Glut Worries Weaken Oil Prices
