WASHINGTON (dpa-AFX) - Crude oil fell on Thursday amid concerns about a supply increase for August by OPEC+, huge crude stock inventory in the US, and intensifying US tariff pressures.
WTI Crude Oil for August delivery tumbled by $1.81 today to settle at $66.57 per barrel.
September month Brent Crude contract was last seen trading, down by $1.56, to $68.63 per barrel.
At a July 6 meeting, the OPEC+ alliance agreed to ramp up oil production to add 548,000 barrels per day to global supply, contrary to the expected 411,000 bpd hike. A key non-OPEC+ member, Russia, also consented with this decision.
Reportedly, the cartel is expected to make another super-sized increase in September.
OPEC+, in its 2025 World Oil Outlook forecast, stated that the world will need oil up to 19.5 million bpd by 20250.
However, Bloomberg reported today that the organization is planning for a pause in production increases after their planned hike in September, stoking concerns of lowering demand.
Notably, major oil producers like Exxon, Chevron, and Shell have revised their Q2 expectations downward.
Meanwhile, Executive Director of the IEA, Fatih Birol, stated today that through supply diversification and international cooperation, the world must prepare for energy crises before they happen.
The Middle East remains largely calm as the US-brokered Israel-Iran ceasefire on June 24 still holds.
However, there is simmering tension after Houthis attacked two bulk carriers in the Red Sea on Sunday and Monday. The Yemeni rebel group (supported by Iran) attacked and sank two big vessels - Magic Seas and Eternity C one day after another. Though the US and the West have not directly intervened to confront Houthis as of now, traders feel that if and when it happens, it can send oil prices upwards.
Separately, the US and Iran are set to resume nuclear negotiations. Initially planned to be held today in Oslo, Norway, the meeting is likely to happen next week.
On the monetary front, the US Federal Reserve is in no hurry to go for an earlier rate cut, according to the minutes of the FOMC meeting released yesterday. The Fed's monetary policy could impact the US Dollar.
Oil, being a dollar-denominated commodity, could stabilize after the Fed implements its final decision in the coming months.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
