FX.co ★ Oil Rebounds Despite OPEC+ Output Hike

Brent crude futures climbed towards $70 per barrel on Monday, reversing earlier session declines, as traders assessed OPEC+’s announcement to increase output in September. The organization declared a production hike of 547,000 barrels per day, aiming to reclaim market share amidst potential supply disruptions tied to Russia. This decision aligns with the United States intensifying its push on India to curtail Russian oil imports, with President Donald Trump advocating for a Ukraine peace agreement by August 8. Trump has issued a warning of imposing secondary sanctions at 100% on purchasers of Russian crude, which threatens up to 2.75 million barrels per day of seaborne exports, primarily affecting China and India. Additionally, oil prices gained support from renewed expectations of imminent Federal Reserve interest rate cuts following a weaker-than-anticipated US jobs report for July.