Oil prices inched upward as traders awaited new market catalysts to break out of a narrow trading range, focusing on the upcoming OPEC+ meeting and potential U.S. actions regarding Russian energy supplies.
Brent rose toward $69 a barrel, after the November contract gained 1% in the previous session, while West Texas Intermediate was near $65, News.Az reports, citing Bloomberg.
OPEC+ will hold a meeting this weekend to decide on output for October, and most market watchers expect that the group will opt to keep supply steady.
Russian flows are also in focus amid US efforts to pressure Moscow to make peace in Ukraine by targeting India, a top importer of its crude. New Delhi rejected that initiative, with a cordial meeting between Prime Minister Narendra Modi and President Vladimir Putin on Monday. Separately, Treasury Secretary Scott Bessent said Washington would look at sanctions this week.
Global crude benchmark Brent has largely been confined between $65 and $70 a barrel in recent weeks, with prices about 8% lower this year. There are widespread concerns about a looming surplus after OPEC+ opted at earlier meetings to relax supply curbs in a bid to reclaim market share, and as the US-led trade war risks crimping energy demand.
“Crude is likely to remain rangebound,” said Vandana Hari, founder of market analysis firm Vanda Insights, adding that Ukrainian attacks on Russian oil facilities were providing a floor for prices, while chances of tighter US sanctions had receded. “Expectations of a looming glut are capping gains,” she said.
On the Indian standoff, President Donald Trump said New Delhi had offered to cut its tariff rates to zero following the US imposition last week of 50% levies as punishment for the purchases of Moscow’s oil. Still, it wasn’t clear when the offer was made, or whether the White House plans to reopen talks. Later Tuesday, the US leader is due to make an announcement at 2 p.m. Washington time, although the topic of his address is unclear.
