- Oil prices declined slightly after a nearly 2% rise in the previous session.
- Brent crude: Down 22 cents to $69.36/barrel
- WTI crude: Down 27 cents to $67.66/barrel
- Brent crude: Down 22 cents to $69.36/barrel
- Key reasons for the dip:
- Investor caution over U.S. tariff announcements
- Concern over higher-than-expected OPEC+ output hikes
- Investor caution over U.S. tariff announcements
- U.S. Tariff Update:
- President Donald Trump warned that 25% tariffs on key trade partners (Japan, South Korea, Thailand, etc.) would begin August 1.
- Trump later said the deadline might be flexible, adding uncertainty.
- President Donald Trump warned that 25% tariffs on key trade partners (Japan, South Korea, Thailand, etc.) would begin August 1.
- OPEC+ Output Decision: Oil Prices
- Group to increase production by 548,000 barrels/day in August.
- This exceeds the 411,000 bpd monthly increases seen over the past three months.
- OPEC+ is expected to fully unwind voluntary cuts by September (~2.2 million bpd originally cut).
- Analysts note actual supply increases have been mainly from Saudi Arabia, and often below announced levels.
- Group to increase production by 548,000 barrels/day in August.
- Demand Outlook:
- Prompt demand is strong due to seasonal factors.
- India’s fuel consumption in June rose 1.9% year-on-year, signaling continued global demand strength.
- Prompt demand is strong due to seasonal factors.
Analysts remain cautious about future demand keeping pace with the incoming supply surge.
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