OPEC+ Output Hike: Oil Prices Slip Amid Concerns of Oversupply

Oil prices dropped by 1% as OPEC+ accelerated production output increases, raising concerns about a potential oversupply. Brent crude and U.S. West Texas Intermediate crude both experienced declines. The decision to increase output by 548,000 barrels per day in August follows recent geopolitical tensions involving Iran.

Oil prices fell by 1% at the beginning of the week, following an OPEC+ decision to accelerate output hikes, raising fears of oversupply. Brent crude dropped 67 cents to settle at $67.63 a barrel, while U.S. West Texas Intermediate was down $1.20, closing at $65.80.

This decline comes after OPEC+, which includes members of the Organization of the Petroleum Exporting Countries and their allies, resolved to increase production by 548,000 barrels per day in August. The meeting, their first since oil prices fluctuated due to tensions involving Israeli and U.S. actions against Iran, marked a significant rise from previous monthly increase approvals.

OPEC+ justified the output boost by citing a stable global economic outlook and favorable market conditions characterized by low oil inventories, which necessitated the increased supply of oil.

(With inputs from agencies.)