Brent moves lower ahead of OPEC+ meeting

The front-month ICE Brent contract has declined by $0.33/bbl on the day, to trade at $64.83/bbl at 09.00 GMT.

IMAGE: Oil pump jack with the OPEC+ logo in the background. Getty Images

Upward pressure:

Brent crude’s price has found some support amid the slow progress of nuclear talks between the US and Iran, according to market analysts.

Delegates from both countries met for a fifth round of talks in Rome last week, “that yielded little progress,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The agreement was expected to get Tehran to agree to stop its nuclear enrichment program in return for Washington lifting its sanctions on Iranian oil.

“The expectations for these talks are not all that optimistic, despite both sides wanting to avoid a direct conflict,” Price Futures Group’s senior market analyst Phil Flynn remarked.

Downward pressure:

Expectations of higher OPEC+ output have dampened market sentiment, pushing Brent crude lower over the past few sessions.

The group will meet later this week to review supply quotas for its members and decide July production levels. Market analysts expect the Saudi Arabia-led coalition to increase output by another 411,000 b/d in July, for the third consecutive time.

“Any data showing a continued lack of adherence to production quotas will strengthen the resolve of Saudi Arabia to punish those members who refuse to cut their output,” Hynes said.

By Aparupa Mazumder

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