Oil Steadies After Gain With OPEC+ and Russian Supply in Focus

Oil prices steadied on Tuesday after a recent rally, with traders keeping a close eye on the supply situation as OPEC+ and Russia prepare to meet later this week. Brent crude futures, the international benchmark, were up 0.1% at $72.74 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 0.2% at $68.25 a barrel.



The upcoming OPEC+ meeting, scheduled for Thursday, will be closely watched by the market as the alliance considers extending its production cuts beyond the current end date of December 2026. The group, which includes Russia, has been reducing output by 2.2 million barrels per day (bpd) since April 2025, with plans to gradually ease cuts starting in April 2025. However, the alliance has decided to extend the collective group cut by one year until the end of 2026, citing concerns about weaker-than-expected demand growth.

The decision to extend the cuts has been largely expected by the market and has already been priced in. However, the additional year of restrictions could be interpreted as OPEC and OPEC+ acknowledging that weaker-than-expected demand growth cannot absorb all the supply returning in 2025. This could lead to further price volatility in the coming months.

In addition to the OPEC+ meeting, traders are also keeping an eye on the situation in Russia, where a series of drone attacks on oil infrastructure have disrupted crude exports through Kazakhstan. The attacks, which occurred over the weekend, have raised concerns about global supply and could lead to further price increases if the disruptions persist.



The market is also awaiting the outcome of talks between U.S. and Russian officials in Saudi Arabia regarding the war in Ukraine. The talks, which began on Monday, could have significant implications for global energy markets if they lead to a relaxation of sanctions on Russian oil, which would directly impact global energy flows.

In conclusion, oil prices steadied on Tuesday as traders awaited the outcome of the OPEC+ meeting and the U.S.-Russia talks in Saudi Arabia. The market is closely watching the supply situation, with geopolitical tensions and potential disruptions in Russian oil exports adding to the uncertainty. As the global oil market continues to evolve, investors and traders will need to stay informed about the latest developments and adapt their strategies accordingly.