Oil Prices Fall on US Tariff Uncertainty, OPEC+ Expected to Raise Output

Oil prices declined due to growing concerns over the potential reinstatement of higher U.S. tariffs, which could dampen fuel demand, coupled with expectations that OPEC and its allies will increase oil production by 411,000 barrels per day. Brent crude fell to around $68.50 per barrel, while U.S. West Texas Intermediate crude dropped close to $66.90. These developments come amid heightened market uncertainty as the 90-day tariff pause ends on July 9 without new trade agreements with major partners such as the EU and Japan, and ahead of the U.S. Independence Day holiday, leading investors to avoid significant risks. Additional negative factors include a slowdown in China's service sector growth, the world's largest oil importer, and a surprising build in U.S. crude inventories, indicating weaker demand. Market watchers are also focusing on upcoming U.S. employment data, which could influence Federal Reserve interest rate decisions and thereby impact oil demand. These factors collectively create a cautious trading environment amid broader economic and geopolitical uncertainties.