Oil prices little changed as investors look ahead to OPEC+ meeting
ADVERTISEMENT Brent crude was up 1 cent at $67.12 a barrel at 0124 GMT, while U.S. West Texas Intermediate crude fell 5 cents to $65.40 a barrel.
Demand expectations received a boost on Tuesday after a private-sector survey showed factory activity expanded in June in China, the world's biggest oil importer, analysts said.
Since Iran and Israel have halted attacks on each other following their 12-day conflict, Brent has traded between a high of $69.04 a barrel and low of $66.34 since June 25, as concerns of supply disruptions in the Middle East producing region have ebbed.
"Oil prices seem to be in a tight range as we've seen a reduction in geopolitical risk and nerves about what OPEC may do in regards to raising production," said Phil Flynn, senior analyst with the Price Futures Group.
Price have been kept in check by expectations that the Organization of the Petroleum Exporting Countries and its allies including Russia, know as OPEC+, will boost its August crude oil output by an amount similar to the outsized hikes agreed in May, June, and July.
ADVERTISEMENT Four OPEC+ sources told Reuters last week the group plans to raise output by 411,000 barrels per day next month when it meets on July 6. The market is already seeing the results of the previous OPEC+ increases with Saudi Arabia, the world's biggest oil exporter, lifting shipments in June by 450,000 bpd from May, according to data from Kpler, its highest in more than a year.
ADVERTISEMENT In the U.S., crude oil inventories rose by 680,000 barrels in the past week, according to sources citing figures from the American Petroleum Institute. Official data from the Energy Information Administration is due Wednesday at 10:30 a.m. ET.
U.S. non-farm payrolls data due on Thursday will shape expectations around the depth and timing of interest rate cuts by the federal reserve in the second half of this year, said Tony Sycamore, analyst at IG.
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Lower interest rates could spur economic activity which would in turn boost oil demand.
Investors are also watching trade negotiations ahead of U.S. President Donald Trump's tariff deadline of July 9. Trump on Tuesday said he is not thinking of extending the deadline.
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