Oil prices edged lower on Tuesday, extending their losses for a third consecutive session, as expectations of higher output from the Organization of the Petroleum Exporting Countries (OPEC) outweighed optimism over a possible U.S.–China trade deal.
Brent crude futures slipped by four cents to $65.58 a barrel, while U.S. West Texas Intermediate (WTI) crude fell nine cents to $61.22 a barrel. Analysts said that traders remain cautious amid signals that OPEC and its allies may soon increase oil production to stabilize supply and demand in global markets.
The decline follows reports that OPEC is preparing to raise output levels in response to rising global demand forecasts for 2026. However, some market participants worry that an increase in production could put downward pressure on prices if global economic recovery remains uneven.
The market was also rattled by fresh developments in Russia’s oil sector after Lukoil, the country’s second-largest producer, announced plans to sell off its international assets. The move comes in response to sweeping U.S. sanctions targeting Moscow’s energy industry.
Washington imposed new restrictions last week on Russia’s two largest oil companies, Rosneft and Lukoil, citing their continued support for the Kremlin’s war in Ukraine. U.S. Treasury Secretary Scott Bessent said the sanctions aim to weaken Russia’s ability to “finance its war machine” and limit its access to global markets.
“The actions increase pressure on Russia’s energy sector and degrade the Kremlin’s ability to raise revenue for its war efforts,” Bessent said in a statement.
The sanctions have heightened uncertainty in global energy markets, particularly as Russia remains a major exporter of crude oil and refined products. Industry observers say the measures could prompt further restructuring within Russia’s oil industry, with companies seeking to divest from international operations to mitigate losses.
Despite the geopolitical tensions, some optimism remains over global trade prospects. Investors are watching closely as Washington and Beijing continue negotiations toward a potential trade agreement, which could boost economic growth and energy demand if successful.
U.S. President Donald Trump reiterated his goal of ending the war in Ukraine, which began when Russia launched its military operation on February 24, 2022. However, analysts note that energy sanctions and supply adjustments by major producers will likely continue to influence oil prices in the near term.
