Oil Prices Fall Again — Trump & OPEC+ Deadly Combination
Oil prices fell in Asian trading on Tuesday as investors assessed the impact of President Donald Trump’s tariff hikes on key trade partners, while lingering oversupply concerns from rising OPEC+ output added further pressure.
As of 21:40 ET (01:40 GMT), Brent Oil Futures expiring in September fell 0.7% to $69.11 per barrel, while West Texas Intermediate (WTI) crude futures also dropped 0.7% to $67.46 per barrel.
Both contracts rose more than 1% on Monday despite expectations of increased supply, as traders assessed the overall state of the market, which appeared to be tight.U.S. President Donald Trump on Monday escalated his global trade campaign by notifying 14 countries that sharply higher tariffs will take effect on August 1. The list included major U.S. suppliers such as Japan and South Korea, along with smaller exporters like Serbia, Thailand, and Tunisia.
The tariff letters outlined a 25% levy on all goods from Japan and South Korea, while some nations face up to 40% tariffs.
Trump signed an executive order over the weekend extending the original July 9 deadline to August 1, giving countries a final window to negotiate. However, he said the deadline is “firm, but not 100% firm,” suggesting some flexibility for trade partners that actively engage.
The potential for steep U.S. tariffs on 14 countries, including large energy importers like Japan, South Korea, and India, could disrupt trade flows and hurt industrial output.OPEC+ output hike in focus; market still appears tight
The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, announced on Saturday that it will increase oil output by 548,000 barrels per day (bpd) in August.
The hike was larger than the 411,000 bpd increases already implemented for May, June, and July.
The group also warned that it will consider another 548kb/d hike in September at the next meeting on 3 August.
The decision marks a continued rollback of the voluntary 2.2 million bpd in cuts that major producers like Saudi Arabia and Russia had initiated earlier this year to support prices.
Oil prices fell sharply early Monday but recovered later in the day after Saudi Arabia raised the official selling price of its flagship Arab Light crude for August.
The price hike to a four-month high for Asian buyers was seen as a show of confidence in oil demand by the world’s top exporter.
Source: (ayu-newsmaker)
