Oil prices held steady in Asian trading on Tuesday, pausing their recent rebound as reports of a potential output hike by OPEC+ offset optimism over easing trade tensions between the U.S. and China. The market’s recent gains were driven by strict U.S. sanctions on Russia’s major crude producers and renewed hopes for a trade deal between Washington and Beijing. However, signs that OPEC+ may increase production in the coming months tempered bullish momentum.
Brent crude futures for December slipped 0.1% to $65.59 per barrel, while West Texas Intermediate (WTI) crude futures fell 0.1% to $61.26 per barrel by 21:21 ET (01:21 GMT). Reports from Bloomberg indicated that OPEC+ is considering a third monthly production increase of about 137,000 barrels per day in December, with at least eight member nations expected to support the proposal during their meeting this Sunday. The move comes as the group continues to unwind two years of supply cuts aimed at stabilizing prices.
The production boost reflects OPEC+’s strategy to regain market share despite recent price weakness. Meanwhile, the market remains focused on U.S. sanctions against Russia’s top oil firms, Lukoil and Rosneft, which threaten to disrupt global crude supply. While Moscow has historically managed to circumvent such restrictions, the sanctions mark a tougher stance by the U.S. administration over the war in Ukraine. Washington has also targeted India and China, key buyers of Russian oil, with tariffs and trade measures.
Despite geopolitical headwinds, sentiment was supported by reports that the U.S. and China have reached a framework trade agreement, with further discussions expected when Presidents Donald Trump and Xi Jinping meet in South Korea later this week. The potential thaw in trade relations provided some relief to oil markets already navigating a volatile global landscape.