Oil prices slip slightly ahead of key OPEC+ meeting

Investing.com-- Oil prices traded marginally lower Tuesday, as investors mostly stayed on the sidelines ahead of a closely watched OPEC+ meeting that could provide key signals on future supply levels.

At 07:50 ET (11:50 GMT), Brent Oil Futures edged 0.5% lower to $63.81 per barrel, while West Texas Intermediate (WTI) crude futures traded 0.6% lower to $61.18 per barrel.

Market activity remained muted, partly due to Monday’s public holidays in both the U.S. and the UK.

Oil was supported as U.S. President Donald Trump on Monday extended a deadline for his proposed reciprocal tariffs against the European Union. He would delay imposing 50% tariffs on EU imports, moving it from June 1 to July 9. 

Markets await OPEC+ meeting

The Organization of Petroleum Exporting Countries and allies, collectively known as OPEC+, are weighing the possibility of another production boost at their upcoming meeting, Bloomberg News reported last week.

Eight OPEC+ countries, which had pledged extra voluntary oil output cuts, will now meet on May 31, a day earlier than previously planned, Reuters reported on Monday, citing three OPEC+ sources.

According to reports, one option under consideration is a supply increase of 411,000 barrels per day in July, though no final decision has been made.

OPEC+ has been in the process of unwinding output cuts, with additions to the market in May and June.

"We’re assuming in our balance sheet that the group will agree to increase output by another 411k b/d in July. This should keep the market well supplied over the second half of this year," ING analysts said in a recent note.

Trump mulls fresh sanctions on Russia

U.S. President Donald Trump said on Monday that Russian President Vladimir Putin had "gone absolutely CRAZY" after a massive aerial attack on Ukraine.

“I’ve always said that he wants ALL of Ukraine, not just a piece of it, and maybe that’s proving to be right, but if he does, it will lead to the downfall of Russia! Likewise, President Zelenskyy is doing his Country no favors by talking the way he does,” Trump said in a social media post.

A day earlier, Trump voiced growing frustration with Russian President Vladimir Putin, saying he was “absolutely” considering new sanctions against Russia.

New sanctions could put Russian energy flows at risk and affect global oil supply.

U.S. inventories in spotlight

Traders will also keep an eye on U.S. crude inventories, delayed to later this week due to Monday’s holiday, as the summer driving season kicks into gear and as the lower oil price environment continues to result in reduced drilling activity in the U.S.

Baker Hughes (NASDAQ:BKR) data showed that active rigs fell by 8 last week to 465. This is the fourth consecutive week of declines, leaving the rig count at its lowest since November 2021. 

Ajushman Ojha contributed to this article.