Crude oil prices slid further today after a weak start to the week, following reports that OPEC+ was discussing a greater than originally planned production hike for July.
These reports have been circulating for a few days now, fueling pessimism among traders and forecasters. At the time of writing, Brent crude was trading at $64.60 per barrel while West Texas Intermediate was at $61.30, after last week both recouped some of their earlier losses on reports about a more or less imminent Israeli strike on Iranian nuclear facilities.
“Crude oil edged lower as the market contemplated the outlook for rising OPEC supply,” ANZ analysts said earlier today in a note, as quoted by Reuters. On the other hand, ING analysts noted President Trump’s concession to the EU, which delayed the entry into effect of 50% tariffs to early July in case the two failed to seal a new trade deal. Also on the bullish side, President Trump threatened Russia with more sanctions after intensified strikes on Ukraine that followed a large-scale Ukrainian attack on Russian territory.
As for OPEC+, the Dutch bank’s analysts have assumed that the group will indeed add another 411,000 barrels to its output in July, ensuring that the international oil market is well supplied during the second half of the year.
Meanwhile, in an update on the ongoing attempt to negotiate a nuclear deal between the United States and Iran, the latter’s president, Masoud Pezeshkian, said that the country will be able to survive even if no deal is negotiated and sanctions remain in place.
“It’s not like we will die of hunger if they refuse to negotiate with us or impose sanctions,” Pezeshkian said, as quoted by Iranian state media. “We will find a way to survive.”
If the two do reach a deal, the U.S. will likely lift sanctions on Iran’s oil industry, which would boost international flows of Iranian crude, depressing prices.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com
