FX.co ★ Oil Falls after OPEC+ Hike

On Monday, WTI crude oil futures declined to approximately $66.5 per barrel as traders assessed the implications of OPEC+’s latest decision to enhance output amidst rising geopolitical tensions. The group announced an anticipated increase in production by 547,000 barrels per day beginning in September, finalizing the phased reversal of the voluntary production cuts made in 2023. Although expected, this decision has reinforced concerns that global oil supply might surpass demand later this year, which could lead to a rise in inventories. There remains uncertainty about whether OPEC+ will continue to expand supply. Concurrently, lackluster US employment data has amplified worries regarding an economic downturn, especially in light of the Trump administration's recent imposition of tariffs. Market participants are also alert to potential US actions against Russian oil supplies. President Trump has proposed secondary sanctions on nations purchasing Russian crude, particularly targeting India, with such measures potentially being enforced as early as August 8.