Oil fell after OPEC+ (Organization of Petroleum Exporting Countries) agree with increased production higher than expected next month, raising concerns about excess supply, while American tariffs feed fears about demand prospects.
Brent retracted 1.4% to $ 67 the barrel, after falling 0.7% on Friday (4), and the West Texas Intermediate (WTI) was below $ 66. The group led by Saudi Arabia decided on Saturday (5) increased the offer by 548,000 barrels a day, placing the group on the way to reverse their latest production cuts, a year before planned.
The oil market has been shown to be volatile in recent weeks after the conflict between Israel and Iran, with a fragile truce now in force and the focus changing to the supply of OPEC+ and US trade policy.
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President Donald Trump’s fares will come into force on August 1, the Secretary of Commerce, Howard Lutnick said, signaling some maneuver space for business partners before the previous deadline of July 9.
OPEC+ had previously announced increases of 411,000 barrels per day to May, June and July – already three times faster than expected – and traders expected the same value for August. The increase amplifies a drastic strategic change of years of production restriction to the reopening of taps to recover market share.
The group stated in a statement that the increase was based on “a stable global economic perspective and current healthy market foundations.”
