Oil prices drop as OPEC+ boosts output; U.S. futures slip ahead of tariff deadline
Crude oil prices fell Sunday after OPEC+ announced a larger-than-expected production increase for August, aiming to reclaim market share by lowering prices.
West Texas Intermediate crude dropped 1.6% to $65.92 a barrel, while Brent crude dipped 0.9%, News.Az reports, citing foreign media.
The eight OPEC+ members, led by Saudi Arabia, plan to raise output by 548,000 barrels per day in August, accelerating the rollback of voluntary cuts made in 2023. The move also targets over-producers like Iraq and Kazakhstan while pressuring U.S. shale producers.
Despite the increase, analysts say natural decline rates at oil wells may limit long-term oversupply risks.
Meanwhile, U.S. stock futures fell after the Trump administration announced that new tariffs on trade partners would take effect on August 1, not July 9. Dow futures dropped 130 points (-0.3%), while S&P 500 and Nasdaq futures were down about 0.4%.
Markets closed last Friday for the July 4 holiday, with the S&P 500 and Nasdaq hitting record highs. However, upcoming tariff negotiations and increased oil production are stirring uncertainty as global markets await further developments.
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