Oil prices traded lower during Tuesday's Asian deals, amid expectations of increased supply from OPEC+ and mounting concerns over a potential economic slowdown due to higher United States tariffs.
By 3:25 pm AEST (5:25 am GMT) Brent crude for September eased 30 cents or 0.5%, to $66.44 per barrel, while U.S. West Texas Intermediate (WTI) for August slipped 33 cents or 0.5% to $64.78 per barrel.
Market sentiment was pressured by the prospect of further supply increases from OPEC and its allies.
A Bloomberg report indicated that key OPEC+ members are open to another 411,000 barrels per day (bpd) hike for August - marking the fourth consecutive month of such an increase. The group had initially agreed to unwind 2.2 million bpd of production cuts at a rate of 138,000 bpd.
According to Reuters, four OPEC+ sources confirmed the bloc plans to raise output by 411,000 bpd in August, building on similar increases in May, June, and July.
If implemented, total supply hikes this year would reach 1.78 million bpd - over 1.5% of global demand. The group is set to meet on 6 July to finalise its production strategy.
Adding to the bearish sentiment were renewed trade tensions. Uncertainty over U.S. tariffs weighed on the market, with investors closely watching for developments ahead of a key deadline.
U.S. Treasury Secretary Scott Bessent warned that countries could face sharply higher tariffs, even amid ongoing negotiations. The tariff rate is set to revert from a temporary 10% to a range between 11% and 50% on 9 July, in line with President Donald Trump's measures announced on 2 April.
