Oil prices drop over rising OPEC+ output

Oil prices slipped in Asian trade on Wednesday, June 4, 2025, following concerns of increasing OPEC+ output and tariff tension that threatens the global economic outlook.

Brent crude futures dipped 17 cents, or 0.3%, to $65.46 a barrel by 0644 GMT, while U.S. West Texas Intermediate crude was down 19 cents, or 0.3%, at $63.22 a barrel.

Both benchmarks climbed about 2% on Tuesday to a two-week high, driven by worries over supply disruption from Canadian wildfires and expectations that Iran would reject a United States nuclear deal proposal key to easing sanctions on the major oil producer.

“Despite fears over Canadian supply and stalled Iran-U.S. nuclear talks, oil markets are struggling to extend gains,” said Tsuyoshi Ueno, senior economist at NLI Research Institute.

Oil prices rise over supply concerns

Ueno added that the OPEC+ increases were capping the upside, Reuters reported.

Ueno said hopes for progress in U.S.-China trade talks were overshadowed by profit-taking, as investors stayed cautious over the broader economic fallout from tariffs.

U.S. President Donald Trump and Chinese leader Xi Jinping are likely to speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating a deal to roll back tariffs and trade curbs.

The Star