Oil Prices Dip Amid Tariff Uncertainty and OPEC+ Output Boost

Oil Prices Dip Amid Tariff Uncertainty and OPEC+ Output Boost

  • 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
  • Key reasons for the dip:
    • Investor caution over U.S. tariff announcements
    • Concern over higher-than-expected OPEC+ output hikes
  • 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.
  • 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.
  • 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.

Analysts remain cautious about future demand keeping pace with the incoming supply surge.

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