WTI price extends the rally to around $62.40 in Tuesday’s early Asian session.
OPEC+ decided to raise output by 411,000 bpd in July.
Iran poised to dismiss US nuclear proposal.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.40 during the Asian trading hours on Tuesday. The WTI price edges higher after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to increase their production again.
OPEC+ agreed on Saturday to increase production at a steady rate by 411,000 barrels per day (bpd) in July, following an increase in May and June. The group noted in a statement that a “steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories” was its reasoning for the July increase.
Meanwhile, the escalating geopolitical tensions in the Middle East raise uncertainty about the flow of oil and gas around the world, lifting the WTI price. Reuters reported late Monday that Iran is poised to reject a US proposal to end a decades-old nuclear dispute after the US draft insisted that Tehran would have to suspend the enrichment of uranium inside Iran.
Oil traders will closely monitor the US employment report for May, which is due later on Friday. This report could offer some hints about the US economy and interest rate path. If the data shows a stronger-than-expected outcome, this could boost the Greenback and cap the upside for the USD-denominated commodity price.
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