LONDON, May 27 (Reuters): Oil prices eased on Tuesday, on expectations OPEC+ will decide to increase output at a meeting later this week, while a decrease in trade tensions provided some support.
Brent crude futures were down 31 cents, or 0.5 per cent, at $64.42 a barrel by 1341 GMT. US West Texas Intermediate crude fell 30 cents, or around 0.5 per cent, to $61.23 a barrel.
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, is not expected to change policy at a meeting on Wednesday.
However, another meeting on Saturday is likely to agree to a further accelerated oil output hike for July, three delegates from the group told Reuters.
To an extant, the oil supply increase had also been priced in, said SEB analyst Ole Hvalbye.
UBS analyst Giovanni Staunovo said the upside remains limited until it is clear what OPEC+ will decide on Saturday, although he said easing trade concerns were supportive.
US President Donald Trump's decision to extend trade talks with the European Union until July 9 alleviated immediate fears of tariffs that could suppress fuel demand.
Uncertainty over whether a deal can be reached between Iran and the United States added to a more bullish mood.
If nuclear talks between the US and Iran fail, it could mean continued sanctions on Iran, which would limit Iranian oil supply.
Iranian President Masoud Pezeshkian said on Monday that Iran would be able to survive if negotiations with the US over its nuclear programme fail to secure a deal.
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