FX.co ★ Oil Rises as OPEC+ Confirms Steady Production Increase

On Monday, West Texas Intermediate (WTI) crude oil futures saw a significant increase of 2.8%, closing at $62.80 per barrel. This rise followed the announcement by OPEC+ regarding a steady increase in production, which alleviated concerns over a potential sharp spike in supply. Led by Saudi Arabia, the alliance confirmed a gradual output increase of 411,000 barrels per day for July, marking the third consecutive month of such steady increments. The price movement received further support from the fact that the U.S. rig count has declined for the fifth consecutive week in May, hitting its lowest level since 2021. Although overall supply is on the rise, the combination of declining U.S. production and OPEC+'s consistent approach is contributing to market stabilization. While crude prices have dropped over 12% this year, some producers caution that prolonged low prices may eventually lead to a tightening of supply.