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• WTI price declines to near $65.65 in Tuesday’s early Asian session. 
• OPEC+ agreed to hike output by 547,000 barrels per day for September.
• Traders await the API weekly crude oil stock report later on Tuesday for fresh impetus. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.65 during the early Asian trading hours on Tuesday. The WTI trades with mild losses after the Organization of Petroleum Exporting Countries and allies (OPEC+) approved another significant production increase in September. 

OPEC+ met virtually on Sunday, agreeing to boost oil production by 547K barrels per day (bps) for September as concerns mount over potential supply disruptions linked to Russia. The group began increasing output in April with a modest hike of 138K bpd, followed by larger-than-expected rises of 411K bpd in May, June, and July, 548K bpd in August, and now 547K bpd for September.

The threat of secondary sanctions on Russian crude might help limit the WTI’s losses. US Special Envoy Steve Witkoff is expected to visit Russia on Wednesday. Oil traders will closely monitor the development surrounding the agreement between Washington and Moscow. However, the impact of any potential measures remains uncertain. 

“The oil market is still assigning a low probability to anything meaningful from the White House as it relates to Russian oil exports,” said Pavel Molchanov, an analyst at Raymond James.

Oil traders brace for the release of the American Petroleum Institute (API) weekly crude oil stock report, which is due later on Tuesday. On Wednesday, the Energy Information Administration (EIA) Crude Oil stockpiles report will be released. 

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