Oil prices edged lower on Tuesday as traders reacted to expectations of a fresh OPEC+ output increase in August and renewed concerns over a potential economic slowdown linked to rising U.S. tariff risks.
As of 0430 GMT, Brent crude was down 30 cents, or 0.5%, at $66.44 per barrel, while U.S. West Texas Intermediate (WTI) slipped 33 cents, also 0.5%, to $64.78 per barrel.
“The market is now concerned that the OPEC+ alliance will continue with its accelerated rate of output increases,” said Daniel Hynes, senior commodity strategist at ANZ, in a note.
According to four sources who spoke to Reuters last week, OPEC+ — a coalition of the Organization of the Petroleum Exporting Countries and allies including Russia — is planning to raise production by 411,000 barrels per day (bpd) in August. This move would follow similar monthly hikes made in May, June, and July.
If confirmed at the upcoming OPEC+ meeting scheduled for July 6, the total supply increase for 2025 would reach approximately 1.78 million bpd, or more than 1.5% of global oil demand, potentially easing previous supply constraints.
“These larger supply increases should leave the global oil market well supplied for the remainder of the year,” said ING commodities strategists in a research note.
Market sentiment is also being weighed down by growing unease over the impact of possible new U.S. tariffs, which could dampen global trade flows and energy demand in the second half of the year.
