FX.co ★ Oil Gains Despite OPEC+ Output Hike and Tariff Concerns

WTI crude oil futures experienced a 1.4% increase to close at $67.90 per barrel on Monday, recovering from earlier declines. This upturn occurred despite OPEC+ announcing a larger-than-anticipated rise in production and looming concerns about possible US tariffs. OPEC+ has agreed to boost production by 548,000 barrels per day in August, with nearly 80% of previous voluntary cuts being reinstated, primarily from Saudi Arabia. This decision is driven by a stable economic forecast and robust market fundamentals, with further increases set to be assessed at the upcoming meeting on August 3. This adjustment follows more modest increments of 411,000 barrels per day between May and July. Demonstrating confidence in demand, Saudi Arabia has increased the August price of its Arab Light crude to its highest point in four months for the Asian market. Meanwhile, attention is also focused on US trade policy, with tariffs targeting specific countries scheduled to commence on August 1. While oil prices are still underpinned by supply constraints, the uncertainties surrounding tariffs continue to cast a shadow over the economic outlook for the second half of 2025.