WTI crude oil futures hovered around $65.7 per barrel on Tuesday, showing volatility as investors awaited OPEC+’s upcoming output decision. The group is expected to raise production quotas by 411,000 barrels per day (bpd) in August, continuing increases seen in May, June, and July. If confirmed, total output hikes for 2025 would reach 1.78 million bpd, over 1.5% of global demand.
The planned boost is seen as both a penalty for overproducing members and a strategic push by Saudi Arabia to regain market share from U.S. shale and other producers. At the same time, easing geopolitical tensions, particularly the sustained Israel-Iran ceasefire, reduced the risk premium in oil prices. Additionally, investor sentiment remains cautious amid uncertainty over potential new U.S. tariffs. Treasury Secretary Scott Bessent warned that despite ongoing negotiations, some countries may face increased tariffs after the July 9 deadline, clouding the global economic outlook and weighing on oil prices.
