Overview
- On July 6, OPEC+ approved a surprise 548,000 barrels per day production hike for August, exceeding its previous 411,000 bpd monthly increases.
- Oil prices initially dipped but stabilized in the high-$60 range as physical market tightness absorbed most of the added output.
- Analysts report that actual supply additions have fallen short of targets, with Saudi Arabia accounting for the majority of the new barrels.
- Houthi rebel attacks on Red Sea shipping have added a geopolitical risk premium that supports crude prices despite rising production.
- US President Donald Trump delayed the start of higher tariffs to August 1 but maintained plans for steep duties, stoking doubts about future oil demand.