FX.co ★ Oil Steadies Ahead OPEC Meeting

Brent crude oil futures remained steady at approximately $67.1 per barrel on Wednesday as investors cautiously awaited the OPEC+ production decision. The consortium is anticipated to increase output by 411,000 barrels per day (bpd) in August, culminating in a 2025 total increase of 1.78 million bpd—exceeding 1.5% of global demand. This action is perceived both as a corrective measure for overproducing members and an effort by Saudi Arabia to reclaim market share from US shale producers and others. Concurrently, an industry report highlighted an unforeseen rise in US crude inventories, with API data indicating a 0.68 million-barrel uptick last week. This reversed a four-week trend of declines, countering predictions of a 2.26 million-barrel reduction. Additionally, geopolitical tensions have alleviated as the ceasefire between Israel and Iran endures, thereby lowering oil's risk premium. However, ambiguity concerning potential new US tariffs post-July 9 deadline continues to obscure the global economic outlook and exert downward pressure on prices.