Oil prices are close to their lowest levels in three months; Traders are evaluating the impact of lower geopolitical risks and indicators on the availability of supplies before the OPEC+ meeting scheduled for next month.

The spot spread for global benchmark Brent crude is 26 cents, closely approaching a bearish “contango” structure, which indicates abundant supplies in the near future.

Although settlement prices for Brent and WTI futures rose on Friday, they fell more than 2% over the week, approaching their lowest levels since February.

While oil prices have declined since mid-April, the price of Brent is still up by about 7% this year, partly due to OPEC+ production cuts of two million barrels per day, in addition to ongoing geopolitical risks in the global market.

On the other hand, the Organization of Petroleum Exporting Countries (OPEC) maintained its expectations for the growth of supply and demand for oil for the current and next years, and the markets are particularly anticipating the “OPEC+” meeting scheduled for June. It is expected that production restrictions will be extended until the second half of 2024.

The meeting is being held online, and comes in light of expectations that the alliance will continue the cuts, according to Victor Katona, chief oil analyst at market intelligence company Kpler.