Oil prices decline; Brent slips below $74.50

Oil rigs

Oil prices declined on Tuesday as investors followed developments related to supply amid reports that OPEC+ was considering a production increase.

According to media reports, OPEC+ was said to be discussing a gradual increase in oil output from August, but no decision had been taken on the exact volume yet.

The international benchmark Brent crude was trading down 0.6% at $74.46 per barrel, at 12.50 pm Makkah time, after touching $75.23 earlier in the session – the highest since April 2019.

WTI crude fell 0.8% to $73.08 per barrel.

“Demand optimism is now well established and a tightening of the market is very much in the spotlight,” Bloomberg reported, citing said Vandana Hari, Founder of Vanda Insights.

“If there is a pause in this rally, it will likely come from the supply side.”

Meanwhile, Bank of America said it expects Brent crude to touch $100 per barrel in 2022, driven by tighter oil supply and recovering demand.

American Petroleum Institute is due to release its report on US crude stockpiles later today. Energy Information Administration’s report is expected tomorrow.