At 10:15 GMT, Light Crude Oil Futures are trading $66.40, down $0.93 or -1.38%.
OPEC+ Supply Hike Puts Pressure on Oil Prices
Crude oil prices fell sharply after OPEC+ confirmed plans to raise production by 547,000 barrels per day in September. This supply increase, while widely anticipated, marks a full rollback of the group’s largest output cut—roughly 2.5 million bpd, or about 2.4% of global demand.
Although the headline figure is substantial, Goldman Sachs notes that actual supply growth will likely total around 1.7 million bpd, due to offsetting reductions from members who had previously overproduced.
The accelerated return of OPEC+ barrels comes as the market continues to assess the impact of rising trade protectionism. Recent U.S. tariffs on goods from multiple countries have added another layer of uncertainty for commodity markets, including crude oil.
Russia Sanctions Cloud Global Supply Outlook
Geopolitical risks remain elevated, particularly around Russian crude flows. U.S. threats to impose 100% secondary tariffs on buyers of Russian oil have already impacted trade routes.
At least two Russian cargoes bound for India were diverted, and according to ING, as much as 1.7 million bpd of supply could be at risk if Indian refiners back out.
