Oil prices traded lower feeling the massive expectations that the OPEC and its allies will decide to increase output at its meeting this week.
Prices took another leg lower as China threatened duties on American crude imports in an escalating trade dispute with Washington.
Various oil minister from the OPEC, Russia and other major producers are expected to meet in Vienna on Thursday and Friday to evaluate their current production agreement that has held back 1.8 million barrels per day (bpd) from the market for the past 18 months.
As for Russia, it has been a strong advocate for the return of a 1 M bpd into the market relatively quickly, however, Saudi Arabia favors a more moderate approach to prevent the price from dropping too much according to experts.
Currently, oil prices are on the run following China’s threat of duties on American crude imports in a trade dispute with Washington, while supply increase from OPEC and Russia are due to rear their ugly heads.
The commodity started the week wrong-footed as the commodity current weakness which led to a 3% drop was fueled by concerns over increasing production, a strengthening in the greenback and renewed trade tensions between US-China.
OPEC during its June 22-23 Vienna meeting is expected to increase its output in response to a decrease in production from Venezuela and decrease production due to upcoming sanctions against Iran.
New York-traded WTI crude futures trade at $64.58 a barrel. Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S. trades down at $74.10 a barrel.