WASHINGTON (dpa-AFX) - Crude oil rose modestly on Tuesday as attention shifts to the OPEC+ cartel's supposed plans to increase output even as the Middle East remains uneventful.
WTI Crude Oil traded at $65.40 per barrel, up by $0.29 (or 0.45%) today.
In the Middle East, the ceasefire between warring Israel and Iran continues to hold. Oil price which surged during the 12-day war that started after Israel attacked Iran on June12 corrected post the ceasefire.
Today, the US Senate passed Trump's mega bill which now goes to the House of Representatives to be debated. Investors are concerned that if this bill becomes a law, it will add $3.3 trillion to the already-ballooning US federal debt, impacting the US Dollar and consequently dollar-denominated commodities.
Traders are now focused on the upcoming July 6 meeting of OPEC+. The group is expected to announce a hike in oil production for August by 411,000 barrels per day. If approved, this could bring the supply to 1.78 million bpd or roughly more than 1.5% of global oil demand.
Traders are watching the developments on the tariff front as the deadline of July 9 set by the US President Donald Trump is nearing.
Canada has conceded to American pressure by rescinding the 3% tax on American companies in order to revive the trade talks.
Trump has already announced that the US and India are soon striking a good deal.
Last week, China and the US announced that they have mutually consented to construct a new trade deal based on the agreement signed in Geneva, last month, by both nations.
With the US Energy Information Administration scheduled to release the inventory data tomorrow, analysts are of the opinion that if the EU mediates an agreement with the US by July 9, the global economy could gain the required momentum.
A brisk global economy could accelerate oil demand and offset the impact of any supply side over-production.
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