FX.co ★ Oil Rebounds Despite OPEC+ Output Hike

On Monday, WTI crude futures experienced an increase, reaching approximately $67.50 per barrel. This upward movement reversed losses seen earlier in the trading session as market participants considered the implications of OPEC+'s decision to boost oil output in September. The coalition announced plans to enhance production by 547,000 barrels per day, a strategic move to reclaim market share amid potential supply disruptions due to the situation in Russia. Concurrently, the United States intensified its diplomatic efforts with India, urging a reduction in Russian oil imports as President Donald Trump aimed for a peace agreement concerning Ukraine by August 8. President Trump has indicated the possibility of imposing comprehensive secondary sanctions on entities purchasing Russian crude, which could jeopardize up to 2.75 million barrels per day of seaborne exports, primarily affecting China and India. Additional support for oil prices emerged from expectations of forthcoming interest rate cuts by the Federal Reserve, spurred by a US jobs report for July that fell short of projections.