Oil prices held steady today as investors turned their attention to an upcoming OPEC+ meeting that will determine production levels for August.
Brent crude edged up by one cent to $67.12 a barrel at 01:24 GMT, while U.S. West Texas Intermediate (WTI) crude slipped five cents to $65.40. The price of a barrel of Kuwaiti oil stood at $68.59, reports Al-Rai daily.
Analysts attributed some support to rising demand expectations after a private survey showed factory activity in China — the world’s largest crude importer — expanded in June.
Oil prices have remained within a narrow range since June 25, with Brent trading between $66.34 and $69.04. This stability comes as geopolitical concerns have eased following the end of a 12-day conflict between Iran and Israel.
“Oil is trading in a tight range due to decreased geopolitical risks and uncertainty over OPEC’s next move,” said Phil Flynn, senior analyst at Price Futures Group.
Expectations are building that OPEC+ will announce an August production increase in line with prior monthly hikes. Four OPEC+ sources told Reuters that the alliance plans to boost output by 411,000 barrels per day at its July 6 meeting.
Recent data also show the impact of earlier increases: Saudi Arabia, the world’s top oil exporter, raised its oil shipments by 450,000 barrels per day in June compared to May—its highest level in over a year, according to Kpler, a global data and analytics company.
Meanwhile, U.S. crude oil inventories rose by 680,000 barrels last week, according to preliminary data from the American Petroleum Institute. Official figures from the U.S. Energy Information Administration are expected later Wednesday.
Market participants are also watching U.S. macroeconomic indicators. IG analyst Tony Sycamore noted that Thursday’s non-farm payrolls data will influence expectations around potential Federal Reserve interest rate cuts in the second half of the year. Lower rates typically stimulate economic growth, thereby supporting oil demand.
Adding to market uncertainty, investors are monitoring trade developments ahead of U.S. President Donald Trump’s July 9 deadline to impose new tariffs. Trump stated Tuesday that he does not intend to extend the deadline.
