Oil Holds Decline With Market Waiting for OPEC+ Production Hike
Oil held a decline to trade near the lowest level since early June with the focus on how much OPEC+ will increase production at a meeting on Sunday.
West Texas Intermediate was near $65 a barrel after shedding 0.6% on Monday, while Brent for September closed under $67. The Organization of the Petroleum Exporting Countries and its allies are expected to agree to a fourth monthly major supply increase as leader Saudi Arabia continues its bid to reclaim market share, according to a Bloomberg survey.
Oil lost 9% last quarter in a volatile three months that saw prices drop sharply in April following President Donald Trump’s tariff announcements, surge in June after Israel attacked Iran before erasing gains as hostilities eased. The focus is now returning to supply and demand fundamentals, with potential trade deals and increased OPEC+ production the biggest near-term drivers.
Higher import tariffs are due to restart on July 9 for dozens of top US trading partners. While negotiations are ongoing in a bid to finalize deals after the July 4 holiday, there are signs of snarls with countries including Japan. Trump has threatened fresh levies on the Asian nation, citing its apparent unwillingness to accept US rice imports.
Source: Bloomberg
