OPEC+ Weighs 411,000 BPD July Output Hike as Oil Prices Set Weekly Decline

Oil prices are set for their first weekly decline in three weeks, pressured by OPEC+'s consideration of another production increase of 411,000 barrels per day in July, which would continue the group's shift from defending prices to defending market share. This potential supply hike has raised concerns of oversupply in a market already facing increased crude inventories and surging U.S. crude storage demand, which has nearly doubled in recent weeks to levels not seen since the COVID-19 pandemic. Brent crude and West Texas Intermediate (WTI) both declined about 2% for the week, with WTI falling toward $60 per barrel. The market is also closely watching U.S. rig counts and geopolitical developments, including ongoing U.S.-Iran nuclear talks and regional tensions involving Israeli preparations to strike Iranian nuclear facilities, which could impact supply dynamics. Despite recent gains, analysts forecast continued pressure on prices, expecting Brent to average around $59 per barrel later in the year. These factors collectively underscore a market grappling with the balance between rising production and demand uncertainties.