Oil prices held steady on Tuesday as traders weighed signals that the OPEC+ alliance intends to increase crude output by 411,000 barrels per day in August, in line with earlier supply expansions this year.
Brent crude oil, against which Nigerian oil is priced, rose 5 cents to $66.79 per barrel at 10:01 a.m. in Nigeria, while U.S. West Texas Intermediate (WTI) was up 4 cents at $65.15 per barrel, according to market data tracked by Investors King.
Saxo Bank analyst Ole Hansen said the market remains focused on the OPEC+ production plan, which would mark the fourth consecutive monthly hike if approved at the group’s meeting scheduled for July 6.
The increase would bring the bloc’s total 2025 supply additions to 1.78 million barrels per day, representing more than 1.5% of current global oil demand.
“The market is now concerned that the OPEC+ alliance will continue with its accelerated rate of output increases,” said Daniel Hynes, Senior Commodity Strategist at ANZ.
Sources within OPEC+ told Reuters last week that the coalition — which includes OPEC members and allied producers such as Russia — aims to keep the gradual output restoration approach it has followed since May.
Investor sentiment has also been shaped by trade negotiations linked to U.S. tariff policy. U.S. Treasury Secretary Scott Bessent cautioned that countries may face significantly higher tariffs if no resolution is reached before the July 9 deadline. The White House had earlier suspended tariffs ranging from 11% to 50% announced on April 2, keeping them temporarily at 10%.
Meanwhile, Morgan Stanley forecasts that Brent crude could ease to around $60 per barrel by early next year as the market moves into surplus.
The bank projects an oversupply of up to 1.3 million barrels per day in 2026, citing robust production and easing geopolitical tensions after the recent Israel-Iran ceasefire.
Brent futures climbed above $80 per barrel during a 12-day conflict that began on June 13 when Israel targeted Iran’s nuclear facilities. Prices retreated sharply after the U.S. intervened and a ceasefire was reached.
With OPEC+ expected to confirm its output strategy next week, traders are watching supply trends and global trade talks for further direction. Any surprise shift in supply or renewed geopolitical tensions could alter the price path in the coming months.
