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Oil Extends Slide on OPEC+ Output Signals Despite U.S.–China Trade Boost

Optimism from a U.S.–China trade framework is giving way to renewed supply worries.

Overview

  • Brent fell about 2% to $64.33 and WTI to $60.11 on Tuesday, marking a third straight decline after early-week gains tied to trade headlines.
  • OPEC+ is leaning toward a modest production increase in December, reversing earlier cuts and pressuring prices, according to sources cited by Reuters.
  • U.S. Treasury Secretary Scott Bessent said officials outlined a very substantial U.S.–China trade framework, with Presidents Trump and Xi due to meet Thursday in South Korea.
  • Last week’s rally after new U.S. and EU sanctions on Rosneft and Lukoil has cooled as analysts question how much Russian exports will be curbed given discounts and alternative shipping.
  • Lukoil said it will sell its international assets, and Indian refiners paused new Russian crude orders pending guidance, while the IEA signaled surplus capacity could limit sanctions’ impact.