Oil prices slipped on Monday after OPEC+ announced a larger-than-expected output hike for August, raising concerns about oversupply in the face of fragile global demand.
Brent crude futures dropped by 47 cents (0.69%) to $67.83 a barrel by 03:27 GMT, while U.S. West Texas Intermediate (WTI) crude declined by $0.95 (1.42%) to $66.05.
The move came after OPEC and its allies—collectively known as OPEC+—agreed on Saturday to raise production by 548,000 barrels per day (bpd) in August, a sharp jump from the 411,000 bpd monthly increases approved for May through July, and 138,000 bpd in April.
“The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue,” said Tim Evans of Evans Energy in a market note.
Analysts at RBC Capital, led by Helima Croft, noted that the decision would restore nearly 80% of the 2.2 million bpd voluntary cuts previously made by eight OPEC producers, signaling a strategic shift in output policy.
In addition to supply pressures, investor sentiment was dampened by uncertainty over potential U.S. tariffs and their broader impact on global economic growth, which could curb oil demand in the months ahead.
With more oil flowing into a market already grappling with macroeconomic headwinds, the outlook for prices remains clouded, and traders will be closely watching for demand signals in the second half of the year.
