Oil prices fell 1.5% on Tuesday, boosted by concerns about a supply glut after Iranian and U.S. delegates made some progress in their talks and expectations that OPEC+ will decide to raise output at a meeting later this week.

Brent crude futures were down 99 cents, or 1.5%, at $63.73 a barrel by 1457 GMT. U.S. West Texas Intermediate crude was down $1.02, or about 1.7%, at $60.48 a barrel.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are not expected to change policy at a meeting on Wednesday.

However, another meeting on Saturday is likely to agree on a further accelerated oil output increase for July, three delegates from the group told Reuters.

Meanwhile, Iranian and U.S. delegates concluded a fifth round of talks in Rome last week. Despite limited signs of progress, there are many sticking points, most notably Iran's uranium enrichment.

If nuclear talks between the U.S. and Iran fail, it could mean further sanctions on Iran, which would limit Iranian oil supplies, while any resolution could add Iranian supplies to the market.

Supporting prices, U.S. President Donald Trump's decision to extend trade talks with the European Union until July 9 eased immediate concerns about tariffs that could hurt fuel demand. Wall Street opened higher on Tuesday as Trump's trade suspension was lifted.

Easing trade concerns were supportive, said UBS analyst Giovanni Staunovo, adding that price gains remained limited until it was clear what OPEC+ would decide on Saturday.

The dollar strengthened on Tuesday as the yen came under pressure from a sharp drop in Japanese long-term bond yields, while investors took comfort in Trump's decision to hold off on higher tariffs on the European Union. (alg)

Source: Reuters