Oil Prices Dip Amid Expectations of OPEC+ Output Increase

PUKMEDIA

Oil prices.

Oil prices edged lower on Tuesday, 1 July 2025, as markets weighed the prospect of another OPEC+ production hike in August alongside worries over a potential economic slowdown driven by anticipated higher US tariffs.

According to Reuters, Brent crude futures fell by 30 cents, or 0.5%, to $66.44 per barrel by 04:30 GMT, while US West Texas Intermediate (WTI) crude declined 33 cents, also 0.5%, to $64.78 a barrel.

Four OPEC+ sources recently informed Reuters that the group plans to raise oil production by 411,000 barrels per day in August, following similar increments in May, June, and July. If approved at the upcoming meeting on 6 July, this would bring OPEC+’s total supply increase for 2025 to approximately 1.78 million barrels per day, representing over 1.5% of global oil demand.

OPEC and its allies—including Russia—collectively known as OPEC+, have shifted policy this year after years of production cuts exceeding 5 million barrels per day. The group began reversing these cuts in April, with accelerated increases in subsequent months, aiming to regain market share amid rising production from rival producers such as the United States.

The easing of geopolitical tensions and ample spare capacity have contributed to a more relaxed supply outlook, although concerns remain about the impact of rising tariffs on economic growth and oil demand.



PUKMEDIA