Oil Continues to Drop Amid Anticipation of OPEC+ Decision on Production Cuts

SadaNews - Oil prices fell for the second consecutive day, nearing their lowest levels since early June, as attention shifts to the potential increase in production by the OPEC+ alliance over the weekend.

Brent crude traded below $67 a barrel, while West Texas Intermediate crude approached $65.

The alliance is expected to approve its fourth significant monthly supply increase during its scheduled meeting on Sunday, according to a Bloomberg poll, as it continues its efforts to regain its share of the global market.

Robert Rennie, head of commodity and carbon research at Westpac Banking Corp, stated that the alliance is likely to approve an increase of 411,000 barrels per day this week, with a potential additional increase next month.

He added: "As we enter the third quarter and beyond, we see an escalation in downside risks," noting that prices could test the $60 per barrel level.

Focus on Market Fundamentals

Oil recorded losses of nearly 10% in the previous quarter amid three months characterized by volatility, experiencing a sharp decline in April after U.S. President Donald Trump announced new tariffs, followed by a surge in June following Israel's attack on Iran, before the gains faded as tensions eased.

Market focus is currently on the fundamentals of supply and demand, as ongoing trade negotiations and OPEC+ production increases are the main short-term drivers.

Higher tariffs on dozens of the United States' largest trading partners are set to resume on July 9.

As negotiations continue in an attempt to reach agreements after the Fourth of July holiday, indications of stalled talks with countries including Japan have emerged. Trump has threatened to impose new tariffs on Tokyo, referencing its apparent refusal to import American rice.

Source: Bloomberg