Investing.com – Oil prices fell on Tuesday on reports that Organization of Petroleum Exporting Countries (OPEC) members are considering an agreement that delivers 300,000 to 600,000 barrels a day of additional supply to global markets over the next few months, according to reports that cited people briefed on the talks.
Crude Oil WTI Futures for August delivery were trading at $65.33 a barrel at 1:10AM ET (05:10 GMT), down 0.55%. Brent Oil Futures for August delivery, traded in London, were also down 0.68% at $74.83 per barrel.
Meanwhile, Shanghai Crude Oil WTI Futures for September delivery were down 1.9% at 459.40 yuan per barrel on Tuesday
The OPEC is expected to agree to raise production along with Russia and other producers after a key meeting in Vienna later this week.
“In our view, any production increase effectively signals that the cuts have an end date. In contrast, our recent discussions with clients indicated a growing view that the cuts may last through 2019 and perhaps beyond 2020," Macquarie said in a research report.
Goldman Sachs, on the other hand, believes this week could bring on a bullish, or positive, surprise for oil prices.
"Despite little clarity on the outcome of this meeting, this implied move is in line with the average of the past nine OPEC meetings, including three meetings since 2016 that were unconsequential. This suggests that the option market may be underpricing the event risk," the Goldman analysts wrote.
Oil prices were also under pressure on Tuesday after U.S. President Donald Trump said on Monday that he has ordered the U.S. Trade Representative to identify $200 billion worth of China goods for additional tariffs, escalating a trade dispute between the world’s two largest economies.