Oil slips on OPEC+ hike
Oil prices slipped on Monday after OPEC+ surprised markets by hiking output more than expected in August, while uncertainty over U.S. tariffs and their potential impact on global economic growth weighed on demand expectations.
Brent crude futures fell 47 cents, or 0.69%, to $67.83 a barrel by 0327 GMT, while U.S. West Texas Intermediate crude was at $66.05, down $0.95, or 1.42%.
The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by 548,000 barrels per day in August.
"The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue," Tim Evans of Evans Energy said in a note.
The August increase represents a jump from monthly increases of 411,000 bpd OPEC+ had approved for May, June and July, and 138,000 bpd in April.
The decision will bring nearly 80% of the 2.2 million bpd voluntary cuts from eight OPEC producers back into the market, RBC Capital analysts led by Helima Croft said in a note.
However, the actual output increase has been smaller than planned so far and most of the supply has been from Saudi Arabia, they added.
In a show of confidence in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia.
Goldman analysts expect OPEC+ to announce a final 550,000 bpd increase for September at the next meeting on August 3.
Oil also came under pressure as U.S. officials flagged a delay on tariffs but failed to provide details on the change.
The U.S. is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates scheduled to take effect on August 1.
Trump in April announced a 10% base tariff rate on most countries and higher 'reciprocal' rates ranging up to 50%, with an original deadline of this Wednesday.
However, Trump also said levies could range in value from 'maybe 60% or 70% tariffs to 10% and 20%', further clouding the picture.
'Concerns over Trump's tariffs continue to be the broad theme in the second half of 2025, with dollar weakness the only support for oil for now,' said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Iraq Business
41 minutes ago
- Iraq Business
OPEC+ Reaffirms Oil Market Strategy, Adjusting August Production
By John Lee. The eight OPEC+ countries, including Iraq, have reaffirmed their coordinated approach to oil market stability and announced a collective production adjustment for August 2025. In a virtual meeting held on 5 July, the group cited healthy market fundamentals and a stable global economic outlook as the basis for a 548,000 barrels per day increase in production from July levels. This adjustment forms part of a phased rollback of the 2.2 million bpd voluntary cuts initially agreed in April and November 2023, and formally endorsed on 5 December 2024. The phased increases will unfold over four monthly increments, but the group reserved the right to pause or reverse these measures depending on market developments - a move designed to maintain price and inventory stability. The countries also committed to accelerating compensation for any overproduction since January 2024 and reiterated full compliance with the Declaration of Cooperation. Compliance and market conditions will be monitored through monthly meetings, with the next scheduled for 3 August 2025 to decide on September output levels. Full statement from OPEC: Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman reaffirm commitment to market stability on current healthy oil market fundamentals and steady global economic outlook and adjust production The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 5 July 2025, to review global market conditions and outlook. In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 548 thousand barrels per day in August 2025 from July 2025 required production level. This is equivalent to four monthly increments as detailed in the table below. The gradual increases may be paused or reversed subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability. The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation. The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that were agreed to be monitored by the JMMC during its 53rd meeting held on April 3rd 2024. They also confirmed their intention to fully compensate for any overproduced volume since January 2024. The eight OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation. The eight countries will meet on 3 August 2025 to decide on September production levels. (Source: OPEC Secretariat)
Shafaq News
4 hours ago
- Shafaq News
25% US tariffs hit Japan and South Korea
Shafaq News – Washington On Monday, US President Donald Trump announced the imposition of 25% tariffs on imports from South Korea and Japan, citing ongoing trade imbalances with the two key American allies in Asia. According to official letters sent to his counterparts, Trump affirmed that the new tariffs will take effect on August 1, stressing the need to correct what he described as unfair trade practices. He warned that any retaliatory measures—such as raising tariffs on American products—would be met with additional duties. 'If you choose for any reason to raise your tariffs, whatever percentage you decide will be added to the 25% we are imposing,' Trump stated. The US President also posted messages on Truth Social addressed to countries affected by the new tariffs, reiterating his administration's firm stance on trade fairness. Financial markets reacted to the announcement. The S&P 500 fell by around 1% in afternoon trading, while yields on US Treasury bonds rose to approximately 4.39%. Earlier, Trump threatened
Shafaq News
6 hours ago
- Shafaq News
Iraq reviews progress on Development Road as Faw Port nears completion
Shafaq News – Baghdad Iraqi Minister of Transport Razzaq Muhaibas al-Saadawi chaired a high-level meeting on Monday to assess progress on the Development Road Project, stressing the need to adhere to the planned timelines and intensify coordination with key government and international stakeholders. According to a ministry statement, the session focused on the detailed design phase of the Development Road, with expectations to present a first executable segment to major global firms by the end of this year. The participants reviewed cadastral map distribution across the provinces of Basra, Dhi Qar, Najaf, al-Anbar, Baghdad, Diwaniyah, and Saladin, with more regions to follow. Al-Saadawi emphasized the importance of high-level coordination with Turkiye, especially regarding technical and logistical matters tied to the project's next phase. Ports Director Farhan Al-Fartousi provided a detailed update on Grand Faw Port, noting 92% completion of the navigational channel, 94% completion of the container yard, and full delivery of all five berths as of November 7, 2024. He also confirmed that the linking road project has reached 100% completion, with discussions ongoing about management and operation strategies ahead of its opening to global investors. Minister Al-Saadawi concluded the meeting by stressing the urgency of delivering these strategic infrastructure projects, describing them as essential to Iraq's economic revival and its re-emergence as a key hub in regional and international transport and trade networks.
