whatsapp

Oil Declines as Traders Weigh US Tariffs and OPEC+ Production Decisions

  • 0
  • 122
/media/GTN_4_Gs6XmVu.webp © Image Copyrights Title

Oil prices dropped for the third time in four trading sessions as investors weighed the effects of renewed U.S. tariff threats and the decision by OPEC+ to increase output starting next month. Global benchmark Brent crude fell toward $69 per barrel, while West Texas Intermediate (WTI) slipped below $68, reflecting a cautious tone across energy markets.

The price movement followed U.S. President Donald Trump’s announcement of a new wave of trade duties targeting key partners. Though the tariffs are not scheduled to take effect until August 1, their looming presence raised immediate concerns over global demand, especially in energy-intensive sectors. Trump left the door open for negotiations, but market sentiment remained fragile.

In contrast to the bearish reaction, OPEC and its allies confirmed a larger-than-expected supply increase for August, signaling growing confidence in market absorption capacity. Officials pointed to seasonal demand, particularly in Asia, as justification for restoring some of the group’s previously withheld barrels. In line with this, Saudi Arabia raised the official selling price of its main crude grade bound for Asian buyers.

Still, optimism was tempered by continued geopolitical tension. Although a temporary ceasefire is holding between Israel and Iran, unrest in the Red Sea has resurfaced. On Monday, a second vessel was attacked near Yemen, just hours after Iranian-backed Houthi rebels claimed responsibility for an earlier strike in the same region.

“These attacks raise supply-chain costs and insurance premiums for oil cargoes,” said Haris Khurshid, Chief Investment Officer at Karobaar Capital LP. “But unless there’s a major supply disruption, the impact stays mostly at the margins.”

In the refined products market, a separate trend is emerging. Diesel inventories in the United States have fallen to their lowest seasonal level since 1996, and European diesel futures suggest tightening supply conditions. Traders are watching these developments closely as they could create short-term price divergence between crude oil and refined fuels.

Looking ahead, much depends on whether Trump’s tariff proposals move forward and how OPEC+ members comply with their output increases. Analysts are also keeping a close eye on signs of further volatility in the Middle East.

“Any new OPEC+ signals about extending or adjusting supply cuts will be critical in guiding near-term price direction,” Khurshid added.

With the second half of the year underway, the oil market remains caught between rising geopolitical risks, shifting policy moves, and a fragile balance between supply and demand.

Related Posts
© Binance Launches Sharia-Compliant Crypto Product in UAE and 28 Countries

Binance Launches Sharia-Compliant Crypto Product in UAE and 28 Countries

Dubai – Binance has entered the Islamic finance space with the launch of Sharia Earn, a blockchain-based crypto product certified as Sharia-compliant. The offering, now available in 29 countries, is a...

  • 98
© Dubai’s Emirates Airlines Signs Preliminary Deal to Integrate Crypto Payments

Dubai’s Emirates Airlines Signs Preliminary Deal to Integrate Crypto Payments

Dubai – Emirates Airlines has signed a preliminary agreement to explore the integration of cryptocurrency into its payment systems, marking a strategic move toward embracing digital assets in the avi...

  • 94
© Linda Yaccarino Resigns as CEO of Elon Musk’s X After Two Tumultuous Years

Linda Yaccarino Resigns as CEO of Elon Musk’s X After Two Tumultuous Years

Dubai – Linda Yaccarino has stepped down as CEO of X, the social media platform formerly known as Twitter, after a transformative but often controversial two-year tenure under Elon Musk’s ownership....

  • 88
© Trump Threatens to Impose Up to 200% Tariff on Imported Pharmaceuticals

Trump Threatens to Impose Up to 200% Tariff on Imported Pharmaceuticals

President Donald Trump on Tuesday threatened to impose tariffs as high as 200% on pharmaceuticals imported into the United States, warning the levies could take effect “very soon,” though not immediat...

  • 101
© China’s Producer Prices Fall 3.6% in June, Deepest Drop Since 2023

China’s Producer Prices Fall 3.6% in June, Deepest Drop Since 2023

China’s producer price index (PPI) dropped 3.6% in June from a year earlier, the sharpest decline since July 2023, official data showed Wednesday, deepening concerns over deflation as price wars and w...

  • 87
© Trump Delays New Tariffs Until August 1, But Says Talks Are Still Open

Trump Delays New Tariffs Until August 1, But Says Talks Are Still Open

U.S. President Donald Trump has officially announced a new round of tariffs on dozens of countries, but says he's still open to negotiating. The increased import duties won’t begin until August 1, giv...

  • 108
© U.S. Payrolls Rise by 147,000 in June, Beating Forecasts and Cooling Hopes for July Rate Cut

U.S. Payrolls Rise by 147,000 in June, Beating Forecasts and Cooling Hopes for July Rate Cut

Washington, D.C.: The U.S. economy added 147,000 jobs in June, exceeding Wall Street’s expectation of 110,000 and signaling continued resilience in the labor market, despite slowing momentum in parts ...

  • 101
© Trump Threatens 10% Tariff on Nations Aligning With BRICS Policies

Trump Threatens 10% Tariff on Nations Aligning With BRICS Policies

Des Moines, Iowa: U.S. President Donald J. Trump has announced a new trade policy that would impose an additional 10% tariff on any country “aligning themselves with the anti-American policies of BRIC...

  • 106
© US Debt Hits $37 Trillion: Should Americans Be Concerned?

US Debt Hits $37 Trillion: Should Americans Be Concerned?

Washington — As President Donald Trump celebrates the passage of his “Big Beautiful Budget Bill,” concern over America’s growing debt is rising again. The U.S. national debt has officially hit $37 tri...

  • 110
© One in 10 Cars Sold in UK Now Made in China, Industry Data Shows

One in 10 Cars Sold in UK Now Made in China, Industry Data Shows

London — One in every ten cars sold in the UK last month was made in China, as electric vehicle demand and tariff-free access help Chinese automakers expand their market share....

  • 107
Commnets 0
Leave A Comment