Oil Prices Stable, Market Eyes OPEC+ Supply and Trump's Tariff Pressure
World oil prices stabilized on Friday morning after experiencing a sharp decline of more than 2% the previous day. WTI crude for August delivery rose 0.5% to $66.87 per barrel at 7:30 a.m. Singapore time, while Brent crude for September closed down 2.2% at $68.64 per barrel. This movement reflects market caution in response to the combination of OPEC+ supply policies and escalating trade tensions stemming from US President Donald Trump's tariffs.
The Organization of the Petroleum Exporting Countries and its allies, or OPEC+, is reportedly considering postponing its planned production increase scheduled for September. This move comes amid concerns about a potential global supply surplus that could emerge later in the year. However, signs of tightening in the physical market are still evident, especially since energy demand typically peaks during the northern hemisphere summer.
Market concerns are also heightened by the planned OPEC+ production increase in August, announced late last week. This additional supply is considered to increase pressure if demand cannot keep pace. On the other hand, geopolitical conditions such as escalating tensions in the Red Sea and Trump's series of tariff threats are also clouding sentiment. Aggressive tariff policies are feared to hamper global economic growth and reduce energy consumption.
Despite volatility, oil prices have remained unchanged throughout the week. Investors are currently weighing the risks of tighter supply against the potential for slowing global demand. Market focus is now on the final OPEC+ decision on production and the market's response to global tariff dynamics triggered by Washington.
Source: (ayu-newsmaker)
