Oil prices remain stable: Possible production increases here and sanctions policy there - Commerzbank

The oil market is showing strength ahead of the OPEC+ meeting and the production decision due on Saturday by the eight cartel members who voluntarily cut production and are now considering a further significant withdrawal of these cuts in July, Commerzbank's commodity analyst Barbara Lambrecht notes.

Brent crude oil prices fall

"A barrel of Brent crude oil cost $65 again yesterday, although trading was thinner due to public holidays in the US and the UK. The strength is likely due to relief that the threat of new US tariffs against the EU has been postponed for the time being. However, many uncertainties remain, especially with regard to (US) sanctions policy."

"On the one hand, there are the nuclear negotiations between the US and Iran. Although these were so far inconclusive, both sides remained optimistic after the fifth round of talks and want to meet again in the near future. A possible easing of sanctions against Iran therefore remains on the table."

"On the other hand, however, the mood between Russian President Putin and US President Trump has deteriorated: following Russia's massive attacks on Ukraine, Trump has reiterated that he will absolutely consider new sanctions against Russia. Russia, however, seems keen to play down Trump's reaction."