Oil prices fell to their lowest in five weeks on Tuesday as the Organization of the Petroleum Exporting Countries (OPEC+) announced a plan to increase oil production by 547,000 barrels per day for September. The move, which exceeds initial expectations, is expected to alleviate concerns about a supply disruption in the market.
Brent crude futures dropped $1.12 or 1.63% to $67.64 a barrel, while US West Texas Intermediate crude declined $1.13 or 1.7% to $65.16. Analysts attribute this decline to both OPEC+’s output hike and growing worries about weaker global demand.
“The significant increase in OPEC supplies is weighing on the market,” said Andrew Lipow, president of Lipow Oil Associates. He notes that a decrease in US services sector activity has also contributed to the oversupply outlook.
US President Donald Trump’s recent threats to India over its Russian oil purchases have raised concerns about potential supply disruptions. However, oil prices seem to be unwavering as traders appear skeptical of such scenarios.
Despite Trump’s threats, analysts believe that the market is currently stable and uncertain about the impact of his decisions on oil prices.
Source: https://www.reuters.com/business/energy/oil-prices-fall-opec-output-hikes-counter-russia-disruption-concerns-2025-08-05