OPEC+ Nears July 411,000 Bpd Oil Production Increase

Oil prices have declined recently amid expectations that OPEC+ will extend a planned 411,000 barrels per day production increase into July, continuing the supply boosts seen in May and June. This anticipated output hike is contributing to bearish sentiment in the oil market, with Brent crude hovering around $64.60 per barrel and West Texas Intermediate near $61.30, both pressured by the prospect of rising supply. Eight OPEC+ members, including Saudi Arabia, Russia, and the UAE, are set to meet to finalize production levels for July, with some analysts noting that previous voluntary cuts have been inconsistently implemented, further undermining price stability. Additionally, weakening demand from China, the world's largest crude importer, and subdued U.S. drilling activity amid lower prices have added to downward pressure. While geopolitical factors such as U.S. tariffs delay and potential sanctions on Russia add complexity, the consensus remains that oil markets will be well supplied in the second half of the year, limiting near-term price recovery. Meanwhile, ongoing U.S.-Iran negotiations and their potential impact on sanctions continue to be a factor influencing market dynamics.