FX.co ★ Oil Market Choppy After OPEC+ Output Increase

WTI crude oil futures experienced fluctuations around the $67 per barrel mark on Monday following OPEC+'s announcement of a production boost that exceeded expectations for August. The move suggests confidence in the robustness of market conditions. Eight OPEC+ member countries have agreed to elevate output by 548,000 barrels per day in the coming month, with a potential similar increase anticipated for September. Additionally, Saudi Arabia has adjusted prices upward for its primary crude grade destined for Asia, indicating continued tightness in physical markets despite the hike in supply. Previously, the group had been ramping up supply at a slower rate of 411,000 barrels per day for the period from May through July. OPEC+ attributed this decision to a stable global economic outlook and strong market fundamentals, with the prospect of another increase to be evaluated at the forthcoming August 3 meeting. Concurrently, the market's attention remains on U.S. trade policy, as President Trump's country-specific tariffs are slated to commence on August 1.