Oil Could Drop Again, Explore the Reasons!
World oil prices experienced a slight decline in trading on Wednesday (July 8) morning in Asia, following the OPEC+ decision to significantly increase supply in August. Although demand remains relatively strong amid the holiday season and supply disruptions from Iran, the market remains wary of the potential for a global surplus in the coming months.
OPEC+ announced an output increase of 548,000 barrels per day (bpd) starting in August 2025. This move is seen as a short-term strategy to maintain market share, but it raises concerns about a global oversupply.
"Saudi Arabia's move represents a high-risk strategy—sacrificing prices to maintain dominance," Reuters reported.
The US Energy Information Administration (EIA) lowered its 2025 US oil production forecast to 13.37 million bpd, slightly lower than its previous estimate. A slowdown in shale activity has slightly offset the increase in OPEC+ supply.
The United States announced additional sanctions on Iranian oil exports, which could disrupt approximately 1.5% of global supply if fully implemented. Although the implementation is still not strict, this geopolitical sentiment remains a factor that holds back a deeper price decline.
For the short-term movement, the movement of crude oil prices is predicted to move sideways with a bearish tendency while for the medium term it is still in a correction phase from $ 72.50. (mrv)
Source: Newsmaker.id
