Oil edges down on expectations of extra OPEC+ provide, tariff fears
Brent crude futures for September supply fell 16 cents, or 0.24%, to $66.58 a barrel by 0000 GMT. U.S.
West Texas Intermediate crude declined 20 cents, or 0.31%, to $64.91 a barrel.
“The market is now involved that the OPEC+ alliance will proceed with its accelerated charge of output will increase,” ANZ senior commodity strategist Daniel Hynes mentioned in a be aware.
4 OPEC+ sources informed Reuters final week that the group plans to boost output by 411,000 barrels per day in August, following comparable hikes in Could, June, and July.
If accredited, this could deliver OPEC+’s whole provide enhance for the 12 months to 1.78 million bpd, equal to greater than 1.5% of world oil demand. OPEC and its allies together with Russia, collectively generally known as OPEC+, will meet on July 6. Uncertainty about U.S. tariffs and their impression on world progress additionally saved a lid on oil costs. U.S. Treasury Secretary Scott Bessent warned that international locations could possibly be notified of sharply greater tariffs regardless of good-faith negotiations as a July 9 deadline approaches, when tariff charges are scheduled to revert from a short lived 10% degree to President Donald Trump’s suspended charges of 11% to 50% introduced on April 2.
Morgan Stanley expects Brent futures to retrace to round $60 by early subsequent 12 months, with the market being nicely provided and geopolitical threat abating following the Israel-Iran de-escalation. It expects an oversupply of 1.3 million bpd in 2026.
A 12-day conflict that began with Israel concentrating on Iran’s nuclear services on June 13 pushed up Brent costs. They surged above $80 a barrel after the U.S. bombed Iran’s nuclear services after which slumped to $67 after Trump introduced an Iran-Israel ceasefire.
