Oil prices remained stable near three-week lows in Asian trade on Thursday, pausing after a steep decline sparked by concerns over rising OPEC+ output and weak economic data from the United States.
By 3:15 pm AEST (5:15 am GMT), Brent crude was flat at US$61.04 per barrel, while U.S. West Texas Intermediate futures edged down $0.07, or 0.1%, to $58.14 per barrel.
The market has been under pressure after indications that Saudi Arabia could increase production, amid reports that several OPEC+ members are expected to propose accelerating output hikes in June for a second consecutive month.
A key meeting among eight OPEC+ nations is scheduled for May 5 to finalise the supply strategy.
Analysts believe any further boost in supply, combined with uncertainty surrounding global demand due to ongoing trade tensions, could weigh on prices through 2025.
Meanwhile, the United States imposed fresh sanctions on Wednesday targeting entities involved in Iranian oil trade, ahead of the resumption of nuclear deal talks with Tehran this weekend.
U.S. oil fundamentals provided some support. The Energy Information Administration reported that domestic crude inventories dropped by 2.7 million barrels last week, significantly outpacing analyst expectations for a 390,000-barrel increase.
